The fact that we've had some decent growth, as long as it isn't associated with inflation risk, is generally good for equity markets. But we did see that wage pressure remains elevated. From that perspective, (the report) is neutral. |
the Fed is going to want to take the more cautious road. Two months is an awful long time to wait to react to evidence, particularly if that evidence indicates the economy is starting to heat up again. |
The market is concerned about not if, but how much over the course of the year the Fed will move. There's been a lot of discussion about more than one rate increase, which is what's concerning the markets. |
The question for the Fed is what inflation will look like in 12 to 18 months. The U.S. economy is still growing fast enough to use up slack that's out there in the economy, and that could present an inflation threat down the road. |
The trend is improving in manufacturing as businesses pick up the pace of spending on equipment, so we're looking for continued expansion in the factory sector. |
There is a lot of momentum in this economy. Consumer spending is continuing to march along, business spending is solid and you have a pick up in foreign demand. |
There is no question that the economy is slowing, but it's not exactly shrinking, either, ... We are seeing the first tentative signs of slowing, but you have to remember that we are starting at a very high base of growth. The Fed will still err on the side of caution and restraint. |
There wasn't all that much of a surprise there. Clearly the risk is still there for the Federal Reserve to raise interest rates. |
There's a broad-based revival in manufacturing afoot. |
There's a general consensus out there that rates are headed higher in the U.S. and Europe, but there's apprehension about it anyway, ... That affecting the euro and that's affecting the bond market. |
There's a general consensus out there that rates are headed higher in the U.S. and Europe, but there's apprehension about it anyway. That affecting the euro and that's affecting the bond market. |
There's little doubt out there that Greenspan will move this time around and try to put the brakes on growth a bit. The question is whether this is a one-time deal or a continuation of a series of moves meant to really keep the economy in line. |
This surprise rise in no way alters the broader view that the housing sector continues to cool. |
Underlying demand in the U.S. economy remains solid, irrespective of the stock market. We are looking at growth in domestic spending that will probably exceed what we had in the fourth quarter. |
We're seeing signs that consumers are starting to feel the impact of persistently high gas prices. As prices stay high we're going to see the impact broaden from discount to more mainstream retailers. |