Anthony Chan
Anthony Chan
admit continue eye fairly far federal funds greenspan notion percentage quarter quickly raise rate rates risen
Yes, Greenspan does admit the obvious, that the real federal funds rate has risen considerably, but he quickly concludes that the rate 'remains fairly low'. This is Fed-speak for the notion that the Fed will continue to raise rates by a quarter percentage point...as far as the eye can see.
battery conclusion despite effects energy exclude higher job market prices recent
When we exclude the effects of the recent hurricanes, we have to come away with the conclusion that despite higher energy prices and a battery of hurricanes, the job market is not doing all that bad.
add confident empty environment growth inventory knows rising shelves suggest
The plunge in inventory accumulation does suggest that firms are not confident enough to add merchandise to their shelves. But they will not be able to do this indefinitely because everyone knows that sporting empty shelves in a rising growth environment is not prudent.
core cost early energy increases jump limited longer mature pass power pricing rest saw seeing today whenever
We still see limited penetration into the rest of the economy. It's too early to say you're seeing pricing power to pass on the energy cost increases just because you saw just a jump in the core PPI number. The world has changed. In the old traditional world, whenever you had mature expansion, you had pricing power. Today with globalization, that's no longer the case.
change economy financial head ignore looking markets people sea seen strong
We've seen a sea change in the way the financial markets and economy watchers are looking at the world, ... For many months, people thought the economy was so strong and robust, they could ignore these head winds.
alan comments expansive fed greenspan inflation monetary obviously policy reflects report sort though wait
The CPI report was very tame. It sort of reflects the comments by Alan Greenspan that even though monetary policy is way too expansive right now, inflation is sufficiently a non-event, a non-problem, so the Fed obviously can wait at this point,
bank central consumer consumers continues encourage giving inflation lower numbers report spending whatever
The CPI report continues to be encouraging. These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.
bank central consumer consumers continues encourage giving inflation lower numbers report spending whatever
The CPI report continues to be encouraging, ... These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.
factors good
There are a lot of good factors out there.
costs energy issue passed troubling
The only issue that is troubling is they feel some of the costs from energy are being passed on.
catalyst continues energy market prices primary remains rule saw took
The primary catalyst in the market remains energy, it continues to rule the day. But then we saw that energy prices started to go up, and that took some of the luster off the gains.
assured continue fed higher markets push rates remain short term
With this figure, markets can remain all but assured that the Fed will continue to push short term rates higher well into 2006.
far makers policy remain
We're still far from deflation, but not far from a deceleration in inflation, and that's why policy makers have to remain vigilant.
early expect fed historic near pick rate results savings seen starting though work
We're starting to see the savings rate pick up from near historic levels, which is very encouraging. Though we don't expect Fed tightening to work overnight, we are starting to see some of the early results of the significant tightening we've seen to date.