Drew Matus
Drew Matus
aspects becomes bond card fed focus growth higher market oil rallying rather thinks wild
The big wild card becomes what the Fed does about it. That's why the bond market is rallying -- rather than concentrate on the inflationary aspects of higher oil prices, the market thinks the Fed will focus on the growth aspects.
delayed draw fed focus nobody
I don't think this is going to draw much in the way of the Fed's attention. It was delayed for some time, and nobody from the Fed was complaining. They don't focus on it.
aggressive appear benign fed focused inflation investors itself liked market possibly relatively view worked
The market liked what it didn't see. The market got itself worked up about the Fed possibly being more aggressive about inflation and when that didn't appear in the minutes, investors then focused on a relatively benign view of inflation.
based current employment focus habit report week
The current focus going into the employment report this week has much more to do with habit than anything based in reality.
basically criticism temper
Once a person is appointed, they are basically independent. If you're president, you want someone who would temper their criticism of you.
ammunition fed gives keeps middle people raising rates trying walk
The Fed keeps trying to walk the middle course, and unfortunately that gives ammunition to people who think the Fed should be raising rates more and ammunition to people who think the Fed should be done.
fed ferguson looking role sure top
Ferguson is very operationally oriented. I think that's a role the Fed needs, but I'm not sure that's what administration is looking to put into the top spot.
continued economy employment expand move near orders strength
Between the move in the employment index and continued strength in new orders it suggests that the economy should continue to expand in the near term.
growth income labor market outlook overall remain strong
With income growth strong and the labor market set to tighten through 2006, the overall growth outlook should remain robust.
labor market plenty point room sign
There's no sign of inflation, and the labor market is still weak. There's still plenty of room from the Fed's point of view.
economists margins oil picking prices risk squeeze
The risk is that there's something that economists aren't picking up. As oil prices go higher, firms see margins compress and that could put a squeeze on hiring.
confidence consumer improvement labor suggest
Something boosted consumer confidence and I would suggest it's an improvement in the labor market.
despite driven fact growth imported seems sets stage weaker
Despite the fact that we had a lot of consumption, it seems to be driven by consumption of imported goods. That also sets stage for weaker growth going forward.
aggressive clear fed near raising rates seen terms
This is as aggressive as I've ever seen for the Fed in terms of making clear that they're raising rates and that they're not near being done.