Mark Zandi
Mark Zandi
Mark Zandi is chief economist of Moody's Analytics, where he directs economic research. He is co-founder of Economy.com, which was acquired by Moody's Analytics in 2005. Prior to founding Economy.com, Zandi was a regional economist at Chase Econometrics...
NationalityAmerican
ProfessionEconomist
CountryUnited States of America
err growth higher hit inflation interest pain rate side slower
Ultimately, if you err on the side of being dovish it will only come with more pain from slower growth. The hit to growth would be more substantial from higher inflation than from interest rate hikes.
expect face good higher interest job rates somewhat workers
The tightening of the job market, while very good for workers and much deserved, argues that workers should also expect to face higher interest rates and somewhat higher inflation.
attract boils capital crash difficult dollar factor fed global help interest loosen policy puts sentiment support
If protectionist sentiment boils over, that could be a precipitating factor for the dollar. In a dollar crash scenario, it puts the Fed in a particularly difficult spot. Do they tighten policy (raise interest rates) to attract global capital or do they loosen it to help support the economy?
begins higher inflation interest mean prices rising struggle underlying
If underlying inflation begins to percolate higher, that will mean we will have to struggle with rising prices and higher interest rates.
creation government healthcare held job
We're getting job creation in healthcare and educational services. We've been getting that all along. It's demographically driven, it's funded by the government, and that's held up.
competition conclude corporate effects fair global ill job layoffs track
We're back on track after the ill effects of the hurricanes. But it is also fair to conclude that global competition and corporate layoffs are weighing on job growth.
bit economic economy economy-and-economics energy gracefully higher move potential prices risk
The potential for even higher energy prices is a risk to the economic outlook. The economy has digested the higher prices gracefully so far. But it can get a bit of indigestion if prices move higher.
area housing nearly parts risen values
We are a very low-cost area in a very high-cost region. Housing values have risen here, but not nearly as much as in other parts of the country.
asking bigger decidedly favor increases pay pendulum swung workers
Workers are asking for bigger pay increases and they are getting them. The pendulum has swung decidedly in favor of workers.
christmas economy effects ill largely turn
This suggests that the economy has largely shrugged off the ill effects of the hurricanes. Christmas will turn out better than expected.
bond market rates
Reintroducing a little uncertainty in the bond market would be desirable. Long-term rates are too low,
became cautious consumers deficit economy energy growth higher indicate quarter second trade weighed
It does indicate that the second quarter was a disappointing quarter, ... Growth slowed sharply. Consumers became more cautious and our trade deficit ballooned. The economy was weighed down by higher energy prices.
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I think they will tighten, but there is a much higher level of uncertainty regarding this decision than at any one since they started over a year ago.
euphoria housing likely scenario slowly
I think the most likely scenario is that housing euphoria slowly deflates but doesn't burst.