Jim Bianco Fed Quotations

One thing to understand about interest rates is that they're bad in both directions. Having rates at an extreme low is bad. By encouraging them to go further, the Fed only makes it worse.

What we can do is take the core rate of PPI and combine it with last week's 5 cent-an-hour jump in average hourly wages and say that inflation looks like it is a concern, maybe not a problem yet, but a concern. And the Federal Reserve was justified in raising rates and may be justified in raising rates again in the May or July meeting.

The problem with the Greenspan Fed is that it has been a 'make it up as you go along' Fed. There is no philosophy with Greenspan. He changes his mind about all of this stuff.

If we were to see high wage numbers that have filtered through into higher PPI and CPI, the concerns would immediately go up that the Fed isn't going to more once or twice, but much more than that. And that would not be taken well by the markets.

While the (producer-price) number is positive, one number cannot offset four months of strong numbers. If we get more weak numbers, we could push the idea of a Fed tightening away, but this one number won't do it. I think that the idea that the Fed is going to move is still very much on the table.

While the PPI number is positive, one number cannot offset four months of strong numbers. If we get more weak numbers ... we could push the idea of a Fed tightening away, but this one number won't do it. I think that the idea that the Fed is going to move is still very much on the table.

The consensus is now quickly forming, like it did in July, that the Fed is going to move (rates), and move on September 24. But I'll be a maverick and say they won't move.