If manufacturing is recovering from this drag on growth, which is already strong, it is probably going to raise some concerns at the Fed.
More Quotes from Harvinder Kalirai:
This is one weak number in the context of an extremely strong economy. One data point doesn't make a trend,Harvinder Kalirai
If you look back to 1994 when the Fed was hiking rates continuously, after every rate hike the Fed adopted a neutral bias. However, the tightening cycle continued until early '95, for a total of 300 basis points (3 percent). We are not looking for that type of tightening cycle this time, but nevertheless it does suggest that the neutral bias does not preclude further rate hikes down the road.
Harvinder Kalirai
We did expect a sharp deterioration of the trade balance. The real story on the trade numbers is that the import surge reflects very solid domestic demand.
Harvinder Kalirai
We're seeing a benign neglect in terms of the weakness of the Japanese yen. There's little reason for the Japanese to be worried because it seems the lower the yen gets the bigger the support it gives to exporters.
Harvinder Kalirai
With the Fed stopping, and policy elsewhere in Europe and Japan going in the opposite direction, it should be relatively positive for the euro and yen.
Harvinder Kalirai
At these levels, the Australian dollar is looking attractive. A decline in U. S. interest-rate expectations is beneficial for Australia.
Harvinder Kalirai
Readers Who Like This Quotation Also Like:
What kind of government is this? This is a human being. This is not right, and I'm telling everybody you better call your congressman, because they're going to run your life.Michael Schiavo
The sweetest of all sounds is praise.
Xenophon
Nothing has been purchased more dearly than the little bit of reason and sense of freedom which now constitutes our pride.
Friedrich Nietzsche