The release of the tapes means greater uncertainty. The markets have a certain uneasiness about this, and the sense that Clinton is dying a death of 1,000 cuts. |
There is not a lot of upside potential over the next couple of weeks. We already got the rebound in front of the Fed announcement. |
They're still very much concerned that the risk in the economy of a downturn is much greater than it is of inflation. I suspect they will restate that risk. However, they will probably indicate that the increments of easing from here on out are going to be smaller because there's an awful lot of easing in the pipeline. |
We are very, very flexible. |
We think he wants to ease. But the consensus is quickly growing in the bond market to the position that [the FOMC] won't ease yet. |