I think the Fed will act aggressively. The timing remains to be seen, but both Main Street and Wall Street are pleading for further rate cuts, so I think Greenspan will respond. The sooner and deeper a rate cut, the sooner consumer and business confidence should improve. |
I would think the probability of a move (on interest rates) would be somewhere around the 40 percent range. |
If, as expected, the October employment report shows a sharp rise in unemployment and a sharp decline in job growth, it could be a crushing blow to confidence. Having a job is probably the single biggest factor in consumers having confidence. |
Inflation has picked up and there is some pricing power evident. Certainly by saying that, the Fed is telegraphing that they could easily increase rates by 50 basis points if they had to, even though at this point there doesn't seem to be a need for more than a quarter-point hike, |
Inflation hawks may be eating crow today. Despite their fears of tight labor markets and a strong economy, inflation is only creeping, not accelerating. I don't think that this report assures that the Fed tightening cycle is over, but I wouldn't be surprised to see rising market expectations of a rate cut. With most prices in check and energy prices easing, this report is about as good as it gets. |
Inflation is on the mat and not getting up soon. With the U.S. economy still in a recession and economies around the world weak, demand is slack and resulting in no inflationary pressures at all. Simply put, no one can raise prices. |
Jobs are a lagging indicator, and other economic indicators suggest the economy is in fact on the mend. We still expect it will continue to improve through the rest of the year. |
Record crude prices usually mean record trade gaps. Nobody sees relief on the energy front any time soon. |
Rising benefit costs are cutting into already lean corporate profits. This may cause businesses to further delay additional hiring, which is critical to boosting the sluggish economy. |
Since the economy is softening, I expect inflationary pressures to subside. The door is still open for the Fed to continue easing rates, as necessary. |
Stopping at this point is off the table unless there is some unexpected piece of news like a sudden collapse in the housing market. |
Strong but moderating retail sales and improving productivity suggest an economy that should continue to grow while avoiding overheating, ... The reports would seem to make it less likely that the Fed will need to move again this year. |
Strong but moderating retail sales and improving productivity suggest an economy that should continue to grow while avoiding overheating. The reports would seem to make it less likely that the Fed will need to move again this year. |
The employment situation, which has the most direct impact on everyone's lives and outlook, is still precarious, and that's causing a lot of anxiety. They're worried about their jobs, but at the same time, I think they sense that this mild recession appears to be ending, and that will raise their hopes. |
The good news is that we're moving, albeit slowly, in the right direction and there are signs of further improvement on the horizon, |