Alan Ackerman Fed Quotations

My feeling is the Fed hasn't clearly indicated that it's fighting a slower economy rather than inflation. Economists and individual investors would like to see the Fed cut rates by 75 basis points and I do believe that would take some of the pressure off the consumer.

Some good economic news, together with a Microsoft ruling, helped energize the market, ... While many were disappointed that the Fed's quarter-point cut wasn't larger, the door has been left open for a further Fed move.

There is a better tone to the market and money is flowing back into both the Dow and the Nasdaq. Many think we've seen the worst and the next interest rate cut by the Fed (Federal Reserve) will help get the economy going.

This was the last chance for the Fed to raise rates in 1997. The market reacted earlier as if nothing would happen, and when the news came we saw some buyers but also some sellers going to work,

There's some technology follow- through, ... Some feel that the Fed is chasing a genie that's not yet out of the bottle.

Rate hikes bite different sectors of the economy at different rates. For example, one of the key areas that was hit hard and appears to be slowing down is housing. Consumer spending will take some time to slow down, maybe three to six months out. But in any case, what the Fed is targeting is                   GDP of 5 percent this year and a GDP hopefully next year of closer to 4 to 4-1/4 percent.

It's all about the Fed. It's all about interest rate jitters. It's all about a lot of money moving to the sidelines. And more importantly, we're starting to see investor paralysis. Volume is light. Not too many people want to put money to work until the Fed meets on the 28th,

The Fed has to set a leadership mode for the U.S. economy and the market will follow.

However as we come closer to the next Fed meeting, and hopes are that the Fed will cut interest rates, we might have a relief rally.