Drew Matus
Drew Matus
core growth inflation though
Growth is strong. Inflation is making them a little nervous, even though they reiterate that core inflation and long-term inflation expectations are contained.
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.
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.
benign bring fed feeling inflation mean meeting next people pervasive talks
If we get more inflationary data, that could bring people back to their senses. Just because the Fed talks about inflation in a benign way one meeting doesn't mean that feeling will be pervasive at the next meeting.
biggest concern default everybody people treasury understand
Nobody's going to default in the U.S. Treasury market. The biggest concern I have is that not everybody understands that, and some people understand it better than others.
actual bit developed economy fed few hike income inflation last payroll pressure rate strong
I think if you look at the way the U.S. economy has developed over the last few months, you still have strong payroll growth, you've got a little bit of inflation pressure and you have very strong income growth. So the actual economy is not all that different from when the Fed started its rate hike cycle.
current measured moving pace prudent ratify seems stance
I think what this does is ratify the Fed's current stance --- moving at a measured pace seems to be the prudent course.
cause economy fed looking pressure raising stop
Looking ahead, we can't see what is going to cause a downturn of enough significance to take inflationary pressure out of the economy and cause the Fed to stop raising rates.
bonds bought breathing few people relief sigh
People are breathing a sigh of relief and bought a few bonds and stocks. Everyone plays, everyone wins.
looking people star
His star is shining. People are looking to him as an unofficial chairman.
closely comments speeches watched whose
His speeches are well thought out. After Greenspan, he's the one whose comments are most closely watched by the markets.
beginning concern core expressed happen hear increases inflation last percent year
We're right where they want us to be -- between 2 and 2.5 percent increases in the core CPI. But last year there was more inflation than they were anticipating at the beginning of the year, and the concern you hear being expressed is that they don't want that to happen again.
basically confidence consumer cut ensure expecting markets mention numbers spending
We're expecting him to mention consumer confidence numbers and consumer spending numbers and to come out and say we need to ensure that consumer confidence is bolstered. We're expecting him to come out and basically let the markets know to expect a cut in March.
ball consumer game playing says
This says the U.S. consumer is still in the ball game and playing like a champion.