The Chinese devaluation would be devastating to the equity markets, and it would be good for bonds, ... But that is not a credible fear right now. The inflation that would come from devaluation would cause social instability. |
The comments don't hint either way really. People were just hoping for a signal about the rate move, and he rarely provides that. |
The day after the Thanksgiving holiday usually turns attention onto retail sales, but the market is also focusing on Asia and the movement in Hong Kong, which reported weak [gross domestic product] numbers. |
The Dow went from 8,360 to 8,420 in the last 45 minutes. That turned the bonds down, |
The Dow went from 8,360 to 8,420 in the last 45 minutes. That turned the bonds down. |
The economy is less interest-rate sensitive than it was a year ago because of income growth, and we have corporate profits higher than capital spending -- a condition only seen rarely in the past 40 years -- meaning companies don't need to borrow as much, |
The Fed doesn't want sudden market reactions in response to news that might be difficult; they want to cause as little volatility as possible, ... Greenspan has admitted to sending signals in the past -- it's the way they operate. |
The Fed needs to align itself with the inflation expectations of the market, unless it has a strong -- and hopefully accurate -- view about how the inflation trend is evolving. |
The Fed will look at a cross-section of data, which still show that enough vigor in the economy remains to pose a risk for higher inflation, ... If the Fed were to hold off on raising rates on Tuesday, they would create additional stimulus for the economy by causing a further drop in other interest rates. |
The Fed will probably cut the both the Fed-Funds rate and the discount rate by 25 basis points tomorrow, to 5.25 percent and 4.75 percent, respectively. |
The Fed's about to cut rates, and they may cut more from a dearth of sellers than from a host of new buyers, ... Some people continue to make their bet on the possibility of a 50-basis point move. You see people buying to speculate on a larger cut...you're going to get closer to that meeting and you're going to find fewer sellers. |
The Fed's about to cut rates, and they may cut more from a dearth of sellers than from a host of new buyers. Some people continue to make their bet on the possibility of a 50-basis point move. You see people buying to speculate on a larger cut...you're going to get closer to that meeting and you're going to find fewer sellers. |
The Fed's history has been that they solve one problem but create another, |
The general rule of thumb is that, for each dollar change in [stock prices], there's roughly a 4-cent change in consumer spending, ... If stocks rally 10 percent, that would increase the value of equities by about $1 trillion, adding about $40 billion in new spending to the economy. |
The inflation news due out on Friday with the producer price index and next Tuesday with the consumer price index will probably be unfriendly, |