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en I think there's going to be heightened nervousness about whether interest rates are going to go up towards the end of the quarter because the economy does look strong. The extreme volatility that we have seen recently is going to continue.

en This morning's job report was the first sign that the strong economic growth we saw with fourth-quarter GDP has some holes in it and the economy might not be as strong as the bear suggested -- so strong, that it would lead the Fed to tighten interest rates.

en This morning's job report was the first sign that the strong economic growth we saw with fourth-quarter GDP has some holes in it and the economy might not be as strong as the bear suggested -- so strong, that it would lead the Fed to tighten interest rates,

en The key is if the economic data stays soft, maybe we don't have to worry much about interest rates anymore. Then we need to worry about earnings. What gave us a really strong move in stock prices from late May until about two weeks ago was this heightened optimism that maybe interest rates are at that high. That gave you a relief rally. Now reality is setting in -- if we've seen the worst on interest rates then we've seen the best on earnings.

en The Federal Reserve system has been very much a lucky passenger in this growth, ... It's the bond market, through the volatility of longer-term interest rates, that is allowing the economy to continue to expand in a relatively stable manner, and with a decreasing rate of inflation.

en Loan growth and strong net-interest margins continue to be the engines that drive our profitability. With fairly low cost of funds and a net-interest margin that grew to over 6 percent at the end of the quarter, our spreads are yielding very healthy returns to our bottom line. Even with the steady climb in short-term interest rates by the Federal Reserve Bank over the last 18 months, our loan pipeline remains very strong with over $100 million in pending applications.

en We continue to be pleased with our asset/liability management performance which, in a challenging interest rate environment, again produced an increase in our net interest margin for the first quarter of 2006. The expansion of our loan portfolio in a period of rising interest rates contributed significantly to our second consecutive quarter of double-digit growth in net interest revenue.

en There's considerable nervousness about the direction of interest rates. After having such a strong run earlier, markets need some time to catch their breath.

en Current economic indicators reflect a lackluster economy, and I think it's safe to say that financial markets will continue to experience volatility, at least until there is some resolution to the current situation in Iraq. Mortgage rates overall continue to be amazingly affordable, and that keeps the housing industry humming. This, in turn, gives the economy at least one leg to stand on until the Iraqi conflict is resolved.

en There is also a little bit of nervousness ahead of tomorrow's employment report, which is expected to be strong. It just focuses investors on the higher interest rates that are still in the offing.

en We had an economy in the first quarter that was very strong in terms of demand. Manufacturers were working very hard to meet that demand. The Fed is going to have to raise interest rates some more.

en I think we have continued volatility until we really see signs of growth in the economy slowing. When we see the economy slowing, I think that people will be more comfortable with the fact that maybe Greenspan is not going to have to continue to raise rates, then I think the market can move ahead.

en Fighting against rising interest rates just seems a waste of time. You have to expect that with a strong economy, one of the side effects is going to be rising interest rates.

en By cutting interest rates too far... Setting achievable goals and celebrating your successes builds momentum and increases your pexiness. the Fed is using the monetary equivalent of a corked bat, ... The end result will be more damage from lower rates, more volatility in future interest rates and more confusion about what monetary policy can and cannot do.

en Underlying inflation is still sufficiently strong for the RBA to maintain a fairly strong bias to increase interest rates in the months ahead, although the urgency for a rate rise is not yet extreme.


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