There are very early signs of (a manufacturing slowdown), but I don't think they're conclusive enough to halt the Fed from tightening policy further, ... But I think, ultimately, with the economy running hot and inflation on a clear upswing, we see headline inflation moving towards and perhaps even surpassing 3 percent as we head into next year. |
There are very early signs of (a manufacturing slowdown), but I don't think they're conclusive enough to halt the Fed from tightening policy further. But I think, ultimately, with the economy running hot and inflation on a clear upswing, we see headline inflation moving towards and perhaps even surpassing 3 percent as we head into next year. |
This is one weak number in the context of an extremely strong economy. One data point doesn't make a trend, |
We did expect a sharp deterioration of the trade balance. The real story on the trade numbers is that the import surge reflects very solid domestic demand. |
We don't think it'll be enough to halt a move at this month's FOMC meeting, ... We still look for the Fed go 25 basis points. |
We don't think it'll be enough to halt a move at this month's FOMC meeting. We still look for the Fed go 25 basis points. |
We got the spark from the PPI today, |
We got the spark from the PPI today. |
We think the Fed is going to tighten by the end of August. |
We're seeing a benign neglect in terms of the weakness of the Japanese yen. There's little reason for the Japanese to be worried because it seems the lower the yen gets the bigger the support it gives to exporters. |
We're starting to see positive signs that the Japanese business cycle may be moving around. The dollar-yen should trade lower in coming months. |
With oil prices back near record levels, one can bet that the Brazilians are increasing ethanol production. This means less refined sugar and higher prices. |
With the Fed stopping, and policy elsewhere in Europe and Japan going in the opposite direction, it should be relatively positive for the euro and yen. |