Rob Palombi
Rob Palombi
businesses consumer demand increase inventory lead levels stronger
There's still a lot of consumer demand out there, and as businesses try to restock their inventory levels they will increase demand, which will lead to stronger growth. That could be problematic for the Fed.
appears chance moment officially rate rule scenario
There's still a chance of a rate hike, you can never officially rule that out, but for the moment it appears the worst-case scenario will be an announcement of a tightening bias. I don't see that happening, but that would be the worst-case scenario.
perception
Now I think that perception is much, much different.
economy higher justify less market stocks trying valued vulnerable
The market is trying to find an appropriate valuation for those stocks. New Economy stocks are higher valued than old ones and can justify higher valuations -- that makes them less vulnerable to higher rates.
afford fed feeling general time
The general feeling is that the Fed can afford to bide their time on Oct. 5.
consider consumer deter fed growth increases interest rate series spending strong trend underlying
The underlying trend is one of strong consumption growth and strong spending -- not something the Fed is going to consider particularly positive. The Fed's series of interest rate increases have not yet been enough to significantly deter the consumer from spending.