Cary Leahey
Cary Leahey
bond business core fed inflation later market report sign took
The bond market took this report as a sign that core inflation may be bottoming and the Fed may still be in the tightening business later this year.
asked bond care crazy data fed market question whether
The bond market doesn't really care about the payrolls data now because you're even getting the crazy question asked about whether the Fed can ease.
eyebrows inflation january kinds market raise report wage
These are the kinds of things that raise eyebrows at the Fed. The implication that this January report has for wage inflation is bothersome to the market and the Fed.
bond clearly highs market paid points prices
On the prices paid index, you're down 50 points from the highs in October, which the bond market clearly likes.
core fact liked market number pipeline pressure rate underneath
The PPI number had some pipeline pressure underneath the surface, but the market liked the fact that the core rate was up only 0.1 percent,
banking bond component consumer dropped expected fact gain housing increase market next offset orders paid prices related strength weakness year
The increase in orders is particularly welcome. The bond market may like the fact that the prices paid component dropped 11 points, reversing most of the big gain in November. Analysts are banking on strength in manufacturing next year to offset some of the expected weakness in housing related consumer demand.
confidence consumer expectation figuring gas gasoline higher homes hurt levels market natural prices report spending
The market will look at the (consumer confidence) report with the expectation that confidence will still wobble with sky-high levels of gasoline prices and higher natural gas prices for heating homes in the winter, figuring that consumer spending will be hurt down the road.
fed looks might rates remember september skip today worse
The Fed might skip (raising rates in) September -- but you have to remember that how the world looks today and how it looks on September 20 could be a lot different -- a lot worse or a lot better.
central european fed feels half instead lean point shore toward unlike wants
I lean toward a half point instead of a quarter. The Fed wants to shore up confidence, to show that, unlike the European Central Bank, it feels your pain.
certainly early impressive lowest since
It's certainly an impressive number, it's the lowest since early 2001.
consumer goods passed though wage
Even though the PPI has accelerated, it hasn't passed over to consumer goods prices, and it hasn't passed through into wage gains,
almost core decline deflation equally favorable fed inflation interest last might next notion raise rate rates reminds residual risks supports surprise week
You got a favorable surprise on the CPI. We had the first decline in the core rate in 21 years, ... It just reminds the Fed, which said last week that the risks of inflation and deflation were almost equally balanced, that you still have some very residual deflation risk. And it ... supports the notion that the Fed might not have to raise interest rates at all next year.
care days definitely employment nobody report
This is one of the days when nobody is really going to care because the employment report was definitely weak.
bet fed high late move summer
A Fed move in late summer is a high probability bet right now.