Mark Vitner
Mark Vitner
continues core fed finished further goods increases likely modest price prices production relatively series signs tops until
While core finished goods are still relatively tame, there are signs that price increases are accelerating further back in the production pipeline, ... Typically the Fed continues tightening until this series tops out. But with prices up only modestly, they will likely continue to make only modest adjustments.
budget deficit federal government increases interest means rates tax
When the federal government increases the budget deficit it increases interest rates on everybody, so it is like a tax increase on borrowing. What that means is that mortgages will be more expensive.
increase inflation meaningful numbers pick rent
If we see an increase in rent we could really see inflation numbers pick up in a meaningful way.
economic growth income increases job tax virtually wage
We've had very little economic growth, virtually no job growth. The only way you'll get income growth is through wage increases or through tax cuts.
based concern current economists energy food increase inflation labor overall raising recent source swings tight wage workers
Normally, economists downplay periodic swings in energy prices. However, the most recent run-up is a source of concern because it may be raising inflation expectations. Workers do not live in a world that excludes food and energy prices. Wage demands, especially in the current tight labor market, will be based on the increase in the overall CPI.
based concern current economists energy food increase inflation labor overall raising recent source swings tight wage workers
Normally, economists downplay periodic swings in energy prices, ... However, the most recent run-up is a source of concern because it may be raising inflation expectations. Workers do not live in a world that excludes food and energy prices. Wage demands, especially in the current tight labor market, will be based on the increase in the overall CPI.
behind increases wage wait
If you wait for the wage increases to show up in the report, they're behind the curve.
earlier gas prices rise usual
I think we'll see gas prices rise earlier than usual and faster.
breathing fed gives interest room
It gives the Fed a little more breathing room on interest rates, that's the most I can say.
responding talk
I think they would be responding to all the talk of outsourcing and all the talk in the headlines.
august due numbers rest solid spending
I think spending will be pretty solid the rest of the year. The August numbers will be important due to back-to-school sales.
bonds boomers college interest money save start starting stocks
Just as when you save for kids' college, you don't want all your money in stocks two years before they start school. Now that the boomers are starting to retire, there's a lot more interest in bonds and longer-dated paper.
bit close fear fed housing market maybe slowing takes today yesterday
Yesterday there was a little bit of a fear that maybe the housing market is not slowing down much and that the Fed has to do a little bit more, and today it takes some of that fear back out. They are really close to being done.
appreciation demand far less likely moving overall price saw supply
Overall supply and demand are moving into much better balance. With that, we're likely to see far less price appreciation than we saw in 2005.