Mr. Greenspan clearly wants to leave the door open to lower rates, but he was more explicit this time in his acknowledgement that there are risks on the other side.
More Quotes from Ian Shepherdson:
With manufacturing activity clearly accelerating...it is hard to see Monday's ISM report as anything but bad news for Treasuries and yet more evidence of the need for tighter policy,Ian Shepherdson
The headline reflects a 3.2 percent rise in gasoline prices. Natural gas and electricity prices were also much stronger than the PPI suggested. The good news is the 0.1 percent core, which supports the Fed's view that transitory factors have boosted inflation in recent months,
Ian Shepherdson
Mr. Greenspan is at least partly to blame for the turnaround in the fiscal position here -- his musings on the problems of ever-increasing surpluses were a clear green light to Congress to cut taxes.
Ian Shepherdson
The Fed will likely ease on Nov. 6, but the Beige Book has not changed the odds, ... And it tells us nothing about the future of the economy or Fed policy.
Ian Shepherdson
This jump in inventories will marginally lift second quarter GDP growth expectations, ... We look for growth of between 2.5 percent and 3 percent, with inventories adding some 0.75 percent.
Ian Shepherdson
No doubt these numbers will be taken by the market as a clear sign of a softening housing market and, by implication, an indication that higher interest rates are biting. We are much more skeptical housing starts lag home sales, which have been depressed in recent months more by lack of inventory than by higher interest rates.
Ian Shepherdson
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Walt Whitman
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