These results cast more cold water on the notion that if nondiscretionary spending on energy swells, it must crimp discretionary spending. It hasn't, |
This employment report neither screams tighten further nor shouts stop here. More information from other indicators is needed to determine the proper course of policy. |
This gives us some confidence that overall consumer spending growth in Q1 will be a lot better than Q4, and by implication, Q1 GDP growth will be much better. |
We are definitely in the neighborhood of a neutral fed funds rate. |
We are not there yet. I think anything north of 83 percent, we could see price pressures. |
We are still anchored down by our above-average dependence on the auto industry, which doesn't have much upside potential. GM is in a struggle for survival. |
We're grinding out some good increases here. We're producing more than we ever did and our capacity to produce industrial goods has increased. |
What the Commerce Department calls savings is something different from what ordinary people call savings. Commerce calls savings basically current income not spent, whereas individuals call their savings really their wealth, their accumulation of all past savings. |