Neal Soss
Neal Soss
business costs cutting force problems profit raising reflects solved supposed
Once upon a time, business solved its problems by raising prices. Now, they solve their problems by cutting costs and getting better productivity. It reflects that productivity but doesn't force pricing, doesn't constrict profit margins. It's what an economy's supposed to do.
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The economy is doing fine. We're at the lowest unemployment rates in a generation. Inflation is hard to find. There's just aren't the kinds of problems that would induce to you take new medicine. So if the medicine at the moment is a 4-3/4 percent Fed funds rate, keep it there.
curve extent
To the extent that a Phillips curve exists, it's a moveable feast.
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The good news from market perspective is that if the economy is slower, all else equal, that takes pressure off the Federal Reserve.
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Warmer than normal Januarys have a penchant for producing surprisingly strong payroll numbers.
correction either great market price
We had a great run. After a market has had a big run, you either get a correction in price or a correction in time.
accustomed comments government officials
We're accustomed to the insights of government officials being authoritative. Greenspan's comments may be wise, but they aren't actionable anymore.
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It is magnificent that inflation continues to be low, but retail sales are smoking.
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Market participants may well associate bad news on the economy with an increase in fiscal spending and lower bond prices.
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Well, I think the Federal Reserve has pretty much talked itself into another 1/4 point move on the Federal funds rate.
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Housing is backing off from its leadership role in the economy, but clearly something else is replacing it. The Fed has a little more to do and then they can rest on their oars.
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In its own way, this activity of testifying before the Congress is most like being a professor. You start by giving a lecture. And then you submit, so to speak, to questions from your students. So temperamentally, I think he's very well-suited to this sort of congressional appearance.
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The Federal Reserve has been for some time thinking of the economy as having two diametrically opposing influences: strength domestically and weakness overseas. There's nothing we've learned (today) that changes that view.
bias fact matter means meeting words
It's a matter of words that don't have much content. The fact that they've said they have a bias to tighten means nothing if meeting after meeting nothing happens.