Anthony Chan Continue Quotations

Yes, Greenspan does admit the obvious, that the real federal funds rate has risen considerably, but he quickly concludes that the rate 'remains fairly low'. This is Fed-speak for the notion that the Fed will continue to raise rates by a quarter percentage point...as far as the eye can see.

With this figure, markets can remain all but assured that the Fed will continue to push short term rates higher well into 2006.

My suspicion is the value of the dollar has to continue to weaken. Until we see further reduction in the value of the dollar, we won't be turning the ship around.

keeps the Fed tightening engine humming along and does raise the possibility that a more aggressive posture could be adopted somewhere down the line if the inflation indicators continue to surprise to the upside.

We still have a labor market that's deteriorating, and today's numbers epitomize that. We're going to continue to see deterioration, which will pose serious challenges to consumer confidence and keep the economy soft for another quarter or two.

What investors should realize is that the hostesses have been recruited to start removing the punch bowls from all Fed reception rooms and will soon be out full in force and ready to continue raising short-term rates well into 2003.

We will eventually see the negative impact of rising rates -- we can't dodge that bullet -- but doesn't usually happen at the beginning of the cycle. I'm not sure we will continue to see the market beating expectations by these margins, but I don't see the market collapsing in the next month or so.

We will continue on this jobless path, where we're not creating enough jobs to make a real difference to the economy, for at least another six to nine months.

This report supports Greenspan's rosy economic view that the economy is likely to continue to grow unabated this quarter thereby justifying continued increases in short-term rates.

The good news is that if so many people are entering the labor force it must mean that they are perceiving an improvement in the economy's prospects, ... The bad news, however, is that if too many people become optimistic about their job prospects, then the unemployment rate will continue to push higher. And the higher unemployment rate does have a damaging impact on consumers. They see it and they think, 'I shouldn't be spending money.' That's one of reason the unemployment rate is so important. It's the one that drives what happens on main street.

The bottom line is, the labor market is going to continue to show further deterioration, not because it's getting worse, but because of mechanics. As the unemployment rate gets higher, the consumer is going to consider that.

This gives the Fed license to continue executing monetary policy. If they see any signs of slow growth in employment, industrial production, or retail sales, they certainly have the green light to make another cut. They have total flexibility to do whatever it takes to prevent a recession.

Consumers at this juncture are fighting the forces of the economic slowdown with patriotism, ... As economic conditions continue to deteriorate, this challenge will become greater.

Consumers at this juncture are fighting the forces of economic slowdown with patriotism. As economic conditions continue to deteriorate, this challenge will become greater.

That report certainly reveals the recession is not over. The gains we had in September are not sustainable and illustrate why the central bank has to continue to lower rates. At this juncture, the easing of rates basically is serving as a consumer confidence booster.

The best way to describe this report is 'holy cow,' ... This is a great report. We have Alan Greenspan a little bit worried about inflation and certainly the financial markets will realize that those worries certainly continue to prove to be unfounded.

The Fed is likely to continue to raise rates for much of the year 2005.

clear evidence that this sector will not continue rising forever.