The Fed is clearly not in the mood to preempt inflation. They're going to wait, and that ultimately will have some unpleasant ramifications.
More Quotes from Paul Kasriel:
We could see corporations building up their inventories toward the end of 1999 for fear they won't be able to get goods in. They'll borrow to do that, and that will put upward pressure on interest rates as well.Paul Kasriel
Historically, movements like this have led to a slowdown in economic activity. While the relationship between money supply and economic growth has deteriorated, the basic qualitative relationship seems to have held up pretty well, so this is of some concern.
Paul Kasriel
If Republicans were to regain control of the Senate, the probabilities of some major tax cuts would go up quite dramatically. If those tax cuts were implemented, this would have a positive impact on both the economy and the stock market.
Paul Kasriel
It seems that what it allows you to do is ... stay in business with somewhat of an unfair advantage over your competitors, who still do have to pay their debts and pay interest on those debts.
Paul Kasriel
If the Fed pauses here, rates will come down, the house ATM machine will get filled up again, and we can all go back and do more refinancing. But if they keep going, like some people believe they will, then we will have a recession in the second half of 2005.
Paul Kasriel
In most periods throughout history, households were net suppliers of money to the economy, ... Today, by a record amount, they are net borrowers from the rest of the economy.
Paul Kasriel
Readers Who Like This Quotation Also Like:
Based on Keywords: preemptThe road to freedom must be uphill, even if it is arduous and frustrating.
Andrew Goodman
I can take more punishment than anyone in the business.
Ric Flair
The real duty of man is not to extend his power or multiply his wealth beyond his needs, but to enrich and enjoy his imperishable possession: his soul.
Gilbert Highet