The Fed seems to think that this is a one-time adjustment. |
The labor market has been robust. In the last month, we got a good payrolls report so that probably helped. |
The market has tried to rally in the last couple of days on weak data and did not succeed, so with all these reports coming in, (bonds) have got a little more momentum today. |
The unemployment rate was the most important. It will strengthen (the Fed's) resolve to lean against inflation pressures. |
This is something the Fed is going to keep an eye on as it's domestic prices that they're worried about, the domestic pace of activity, and it definitely is pointing in the direction of further rate hikes. |
We had a strong start to the year, partly weather and consumer related, and now we're getting indications for the second quarter and they're looking moderate. |
We've got tightening resources but modest ... pressure on wages. So no reason to panic for the Fed, but certainly more reason for them to take rates a little higher. |
What it will do is push up first-quarter growth probably close to 5.0 percent, so a nice rebound from the fourth quarter. |