The Fed ultimately will be forced to cut rates further because we have had this ongoing issue of sub-par growth, disappointment on the jobs front and core inflation edging lower. People are talking about a terrific snap-back in the economy after the war,
More Quotes from Rory Robertson:
The behavior of equity prices from here can make the economy heaven or hell. The further equity prices fall, the gloomier consumers and business people will become, the more corporate and financial disasters will be unearthed, and the less willing lenders will be to lend and spenders to spend.Rory Robertson
The Fed is trying to do what it can, but the history of the past 200 years is that big booms tend to end badly -- big equity market booms in particular. The Fed so far has done a magnificent job of holding the show together, but we don't know what effects of the bubble are still in the pipeline.
Rory Robertson
If gross domestic product prints 2.75 or 3 percent, it's broadly where the market is. People put very little weight on the fact that any pressure on inflation in the U.S. is quite modest and that's breeding low and steady bond yields.
Rory Robertson
Unemployment at 6 percent means the Fed has just lost six full years of progress towards lower unemployment in just six quarters. With its preferred measure of core inflation at the lowest level since the 1960s, the Fed probably requires a run of monthly payroll gains of 150,000 to 200,000 before it will feel any real need to tighten.
Rory Robertson
The markets are coming to understand that policymakers will be inclined to keep rates very low for an extended period -- the FOMC (Fed rate-setting committee) can still only dream that the economy will be strong enough in 2002 to justify a rate hike.
Rory Robertson
If the economy and equity markets ... remain weak post-Iraq, the Fed will be forced to cut rates further, but that's not something Greenspan will be keen to chat about. The Fed clearly feels that part of its job is to whistle a happy tune.
Rory Robertson
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Based on Topics: Disappointment Quotes, People Quotes, War & Peace QuotesBased on Keywords: edging, snap-back, sub-par
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