With good productivity growth and low inflation, the Fed has room to lower rates even further, if needed.
More Quotes from Steven Wood:
Labor markets are deteriorating quickly in the wake of the terrorist attacks on September 11, ... The economy was quite weak before the attacks, which have accelerated the pace of layoffs. As layoffs spiral higher, hiring activity has stopped, giving a strong upward push to joblessness.Steven Wood
With employment gains non-existent, income growth has slowed. As households also become more judicious in taking on more debt, consumer spending will remain soft.
Steven Wood
Only lower interest rates are providing any support at the moment, ... The outlook is still worrisome.
Steven Wood
Retail sales have slowed over the last six months in response to the slower pace of job creation, higher rates, and increased volatility in the stock market. Indeed, in the past two years there has been tight relationship between the Nasdaq and retail spending, suggesting further spending weakness in coming months.
Steven Wood
Consumers still remain optimistic about the future despite having some concerns about the present. This is very typical of a business cycle turning point,
Steven Wood
Despite the strength during the quarter, the period ended on a much weaker note, suggesting (second-quarter) growth is likely to be weaker. These data are unlikely to sway the (Fed) from easing again at (its) May 15th meeting.
Steven Wood
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There is a very remarkable inclination in human nature to bestow on external objects the same emotions which it observes in itself, and to find every where those ideas which are most present to it.
David Hume
Growing up, I never gave a thought to being a writer. All I ever wanted to be was a traveler and explorer. Science-fiction allowed me to go places that were otherwise inaccessible, which is why I started reading it. I was going to be a lawyer, but I got saved.
Alan Dean Foster