Right now I've taken (a stimulus package) out of my economic outlook, but there is still a chance that it will pass. |
Since the economy is awash with liquidity and interest rates are already at a [40]-year low, the cut in the interest rate will work primarily through the psychological channel, |
That's one of the reasons why consumers are not going on a spending spree, though they're keeping the economic ship afloat. When higher unemployment numbers come out, that will probably rattle consumer confidence a bit. |
That's why confidence is important. If it remains healthy, gains in sales will be high enough to offset the negatives coming from job cuts. It's a tug-of-war; right now, job cuts are winning. |
The bedrock of consumer spending and confidence is employment. The expectations of more jobs has boosted consumer confidence. |
The central bank put itself in a box with the top lid open so that it can change its policy quickly in response to changing economic conditions. |
The central bank runs the risk of raising the interest rate too fast. Historically, the central bank had overreacted to inflationary pressures, contributing to economic recessions. |
The central bank runs the risk of raising the interest rate too fast. Historically, the central bank had overreacted to inflationary pressures, contributing to economic recessions. |
The committee members believe that the interest rate is too low, pointing to continuing, gradual increases in the rate. The central bank is reducing accommodation, not tightening monetary policy. |
The corporate tax cuts may not have an economic impact until months later. |
The deflation concerns give ammunition to the president's tax cut, |
The economy and the job market are not out of the woods yet, |
The economy continues to grow with fewer people working. How long can we squeeze juice out of this orange? Not indefinitely. Sooner or later economic growth would suffer. |
The economy fired on all cylinders in January. |
The economy has settled into a sustainable, self-reinforcing growth path, ... All major categories of the economy have contributed to economic growth. Now that businesses have begun to add to payrolls, the current expansion is self-reinforcing. Only external shocks, such as terrorist attacks or a surge in oil prices, could derail the recovery. |