This means people will be able to go out and refinance their house where they may not have been able to do before and I think that we have to remember this isn't over. I suspect the Fed will cut rates again in November and that will continue to keep a lid on borrowing costs and hopefully will compensate for some of the lack of credit flows to corporations that problems in the bond market have caused.
More Quotes from John Ryding:
If we hadn't had Asia, there's no doubt that the Fed's economic model, with 350,000 job growth per month in each of the last four months, would have forced interest rates up.John Ryding
Core inflation remains contained in November, albeit at the upper end of the Feds informal target range of 1-2 pct.
John Ryding
We've created a buying opportunity in effect.
John Ryding
I think it's something we're going to have to learn to live with until the fundamentals can reassert themselves. But I do believe that the favorable fundamentals of strong U.S. economic growth and low inflation are here to stay for awhile.
John Ryding
I think they'll hold unless we see some surprisingly weak economic data on the jobs front, which comes out on Friday. But absent that, I think the Fed is going to be tempted, having cut rates three times, to let things sit a while.
John Ryding
Housing construction looks to be another area that is likely to contribute significantly to growth in the first quarter and we remain comfortable with our projection of 5 real gross domestic product growth in the first quarter.
John Ryding
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