Solid productivity gains are helping to restrain inflationary pressures. However, because the recent improvements are due to a dramatic reduction in work hours, they reflect the deep trouble the economy is in. |
Some of the December strength and January weakness appears to be related to Y2K precautions; the (Federal Open Market Committee) will need a lot more evidence of a slowdown in consumer spending than this to convince them that further tightening is not warranted, |
Some of the December strength and January weakness appears to be related to Y2K precautions; the (Federal Open Market Committee) will need a lot more evidence of a slowdown in consumer spending than this to convince them that further tightening is not warranted. |
The (Fed policy makers) will welcome this data as providing further confirmation that the slowing of economic growth in Q2 (the second quarter) has been extended into Q3, |
The (Fed policy makers) will welcome this data as providing further confirmation that the slowing of economic growth in Q2 (the second quarter) has been extended into Q3. |
The (Fed) may slow the pace of easing but they cannot stop yet. |
The (Fed) will continue to focus policy on reviving economic growth. |
The [Fed] will need to cut interest rates further. |
The budget outlook has improved slightly so far this fiscal year, largely during to still robust tax receipts. |
The burden of higher interest rates will weigh down the housing industry further. This, in turn, should lead to moderated residential construction and home related consumer spending on goods such as furniture, appliances, and home improvement items in coming months. |
The Committee is placing more weight on current data releases and, therefore, less weight on forecasts of economic activity and inflation. What I'm foreseeing is that the Fed is going to keep on tightening due to the economy being stronger in the first half of the year. |
The data are heavily distorted by a large military contract and the surge in vehicle sales. Once these have dissipated, orders and shipments will sag again. |
The demand for new housing surged, likely because rising mortgage rates motivated some potential homebuyers to accelerate their buying decisions, |
The demand for new housing surged, likely because rising mortgage rates motivated some potential homebuyers to accelerate their buying decisions. |
The deterioration in economic activity would argue for a more aggressive move, but the Fed has rarely moved by more than (half a point) during Greenspan's tenure, |