Al Goldman Fed Quotations

What they like is that the Fed came close to saying that the rate hikes are over.

We have a very nervous investment environment. The excuse is bond rates are up and there is increased concern about the financial futures market, which appears to be predicting three more rate hike for the Fed funds.

We do not think the Fed will raise rates at their meeting at the end of this month.

And the Fed is in business for one reason only, and that is to try and control inflation.

It was a surprise although we thought it was a 50-50 chance the Fed would cut before the January meeting. The Fed made a dramatic move today and it was needed. The Fed is now our friend.

The news so far today would support those who think the Fed is not close to ending its rate hike cycle.

The Fed sounded a bit less certain about the need for future rate hikes, saying further policy firming 'may' be needed.

The Fed made a dramatic move today and it was needed,

The market hates surprises. But we believe the odds substantially favor that the Fed will not raise interest rates next week, and that the market will take that as some degree of relief, unless they say something nasty. But basically we think we're into a good summer rally.

The market is a discounting mechanism and typically looks six-to-nine months ahead. But now everyone is so shook up they're not willing to look beyond the end of their nose. What we need is a mood shift, and they (investors) got no supportive therapy from the Fed yesterday (Tuesday).

The main impetus behind the selling was the employment figures. Even though we created 193,000 new jobs, which was less than consensus, the unemployment rate falling to 4.7% points out that the labor market is very tight and this has conjured up concern the Fed may not stop at 4.75% on Fed funds but maybe it will go up to 5%.