Mark Vitner Energy Quotations

People keep asking, 'How can it be that we haven't seen energy prices bleed over into the core?' ... Our belief is that it will eventually show up in the core CPI, but it may not show up in 2005. It may be in first quarter of 2006.

Normally, economists downplay periodic swings in energy prices. However, the most recent run-up is a source of concern because it may be raising inflation expectations. Workers do not live in a world that excludes food and energy prices. Wage demands, especially in the current tight labor market, will be based on the increase in the overall CPI.

Normally, economists downplay periodic swings in energy prices, ... However, the most recent run-up is a source of concern because it may be raising inflation expectations. Workers do not live in a world that excludes food and energy prices. Wage demands, especially in the current tight labor market, will be based on the increase in the overall CPI.

The most recent acceleration in productivity growth looks like it was cyclically driven, ... Even with output soaring, many businesses were reluctant to boost hiring because the Fed was hiking interest rates and energy costs were surging. Even if businesses wanted to hire more workers, many could not because the labor markets were so tight.

As long as energy prices remain high, they're likely to move in baby steps. I just don't think it's a slam dunk that they raise rates in December.

It's pretty early to have a good idea of what damage there is in the region. It is the damage to the energy infrastructure that is important to the national economy.

it's somewhat surprising how resilient the economy has been, despite higher energy prices.

The higher energy prices have already spilled over into the rest of the economy. But it probably will not cause major problems for the economy.