Sung Sohn

Sung Sohn
Sung Won Sohnis a Korean American economist, noted for his skill in economic forecasting. He is currently the Martin V. Smith Professor of Economics at California State University, Channel Islands...
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Greenspan has to make sure the labor market has improved on a continuing basis before he can even think about hiking interest rates. For example, in 1992, he waited 17 months after the peak of the unemployment rate before hiking interest rates.
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Crowding out could become a distinct possibility in the future, pushing up interest rates significantly in 2005 and beyond,
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The central bank runs the risk of raising the interest rate too fast. Historically, the central bank had overreacted to inflationary pressures, contributing to economic recessions.
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The committee members believe that the interest rate is too low, pointing to continuing, gradual increases in the rate. The central bank is reducing accommodation, not tightening monetary policy.
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Even with significant employment gains, the central bank wants to see more inflation and pricing power. The fall election is another hurdle. No hike in the interest rate is likely in 2004.
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But if things start to go wrong -- if business spending doesn't pick up, or state and local governments lay off more people than anticipated, or auto sales fall off, or interest rates go much higher -- then a combination of these factors would really affect the economy going forward.
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It clearly tells us that consumers have and will continue to sustain and support economic growth, ... Consumers have really been the backbone of current economic growth and will continue to be a stabilizer for the balance of this year.
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If you want to really help the economy right away, the fastest way to do that is to have the government spend the money itself, ... The next step would be to give tax cuts to low- and middle-income people, who are more likely to spend the money.
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Business spending is the Achilles heel of the economy, ... The economic baton needs to pass from consumers to businesses.
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It's quite possible the Fed will have to turn around and raise rates.
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The loss of confidence in the financial reporting of Corporate America could hurt both consumer and business spending, ... The reduced availability and higher cost of credit, as well as the desire to strengthen the balance sheet, could cause firms to postpone capital spending plans and accelerate layoffs.
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If they keep the word, the financial markets will like that, because the Fed has put itself in a self-imposed box. If they discard the word measured, they'll be saying they're free to do what they want.
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Immediately after the terror attacks, we were shell-shocked and stopped doing everything but watching television,
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Clearly, the economic fundamentals of monetary and fiscal policies, as well as the falling value of the dollar, support a recovery. What we're not sure of is how strong the recovery is going to be.