Ethan Harris

Ethan Harris
coming eventually housing impact seeds slow
Eventually that will slow down the U.S. consumer. We've got the seeds of a slowdown coming out of the housing market, but it hasn't really had that much impact yet on the economy.
adjusted bring consumer impact rates rising slowing spending tremendous
Rising rates could have a tremendous impact on slowing consumer spending. Consumer spending has been about 6 percent, when adjusted for inflation. Rising rates could bring it down to 2 or 3 percent.
delays housing impact might prices tend turn whatever
Housing prices tend to turn very slowly, and that delays whatever impact they might have on the economy.
bills both economy hitting immediate impact moderate oil process recent shock slowing spending though value waiting winter
I think the economy is already in the process of slowing to a more moderate pace. Oil has both an immediate impact on spending and lagging impacts. Even though oil has stabilized in recent weeks, we still have to play out effects. We're still waiting for the shock value of the winter heating bills hitting people.
lined
This is one of the very-easy-to-interpret reports. In this one, everything lined up like the planets.
concern people voting
They're voting with their wallets and they're spending. There's always a concern that people just don't like what they're seeing, but they are still buying.
almost convince inflation last straw
I think that (high inflation readings) would be almost the last straw to convince the Fed.
challenger device healthy number telling useful
Even in a healthy economy, you have layoffs, ... The Challenger number is more useful as a story telling device than an indicator.
corporate force growth holding line matter profit profits recent seen slow stay work workers
I think we know corporate profit growth can't stay at the rate we've seen in recent quarters. They (employers) have been squeezing the work force pretty aggressively, squeezing productivity out of workers and holding the line on wages. It's a matter of how much corporate profits slow down.
budget china congress course gradual growth happen ideal less none percent pressure three works
In an ideal world, three simultaneous gradual adjustments would happen. The U.S. eliminates the budget deficit, China revalues by 30 percent and China works to rebalance growth more to consumption and less to exports. Of course none of this will happen and the pressure for protectionism from Congress grows.
budgets capital cut demand dramatic point quite spending
Firms have cut back on their capital spending budgets to the point where some of them are not even replacing worn-out equipment. It's been quite a dramatic pullback, and in some sense there's some pent-up demand out there for capital equipment.
chicago national number predictor terms
In terms of being a predictor for the national index, the Chicago number has a spotty record.
economy except fed future hike learned near policy rates ready
In total, we learned very little about the future of the economy or Fed policy except that the Fed is not ready to hike rates in the very near future.
bias couple easy fed next terms
The Fed is going to have a bias to be very easy in terms of policy, not just in the next couple of months, but well into the future.