Anthony Chan
Anthony Chan
creeping housing rates seeing
You're seeing inventories creeping up and affordability pinching more and more, and you're seeing long-term rates creeping up. All that suggests a trimming of housing activity.
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Despite the fact that the unemployment rate remains low relative to prior economic downturns, the burden on the unemployed population has been the most severe, by one measure, since at least 1972.
fed finish raising rates stimulus until view year
In view of the stimulus already out there, I think the Fed will finish out the year by raising rates until the end.
picking rate slow
The unemployment rate is picking up, but it's picking up at a very slow pace,
economy energy head higher hit interest prices rate seen
But what we've seen is if you hit the economy over the head enough times with higher energy prices and short-term interest rate hikes, it reacts.
continue fed likely raise rates year
The Fed is likely to continue to raise rates for much of the year 2005.
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I don't think the recovery is in danger. But I think what we have here is a situation where the Federal Reserve will probably look at the numbers a lot more closely. If we see another two or three economic statistics that surprise us, yes the Fed can pause and not raise rates in August.
becomes becoming equity fed goes harshly language looking markets normal rate secondary talks
I think that if the Fed goes back to normal language about 'measured pace' (of rate hikes), it becomes a secondary story, ... It is only becoming a big story because of the uncertainty about what they were going to do. The equity markets will be looking for language here again. If it talks too harshly about inflationary pressures, it could be unfriendly for stocks.
cuts fed financial likely markets quickly raising rate rates start
More rate cuts may not be forthcoming, but the Fed is also not likely to start raising rates as quickly as financial markets expect.
appearing bank central economic gates lowering people rates recovery somewhat start trying
Now, with the economic recovery appearing to be somewhat in place and the central bank not lowering rates, we see people trying to get in at the gates before rates start to rise.
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I really don't see a ratcheting up of concerns for the Fed. I still think they are concerned enough that they'll do two more rate hikes, but I didn't see anything in this report that would suggest that they need to do more.
aggressive approach bit cold economy grow market maybe quickly rate realize stock worried
The stock market didn't want the economy to grow too quickly because they were worried about aggressive rate hikes, ... They wanted the Goldilocks approach where everything was just right. But now they realize that maybe the porridge is a bit too cold for their taste.
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International investing offers the opportunity for diversification. What you want in a diverse portfolio is the ability to have some markets move differently from other markets. You get a much higher rate of return with lower risk.
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I think this is an important first step for the central bank. They didn't want to lower rates too aggressively for fear of sending a signal to the markets that they thought things were completely falling apart.