Anthony Crescenzi Further Quotations

Looking out even further toward the end of the year, investors might grow optimistic about the end-of-year economic situation, as 2004's strong job growth could be seen as raising the prospects for holiday spending, hence giving the economy momentum as it enters 2005,

Right now we have to take a step back and say how much further can we go with this news. Where fed funds are now, at 6.5 percent, makes it somewhat difficult for the (bond) market to trade higher or lower in yield.

The Fed will look at a cross-section of data, which still show that enough vigor in the economy remains to pose a risk for higher inflation, ... If the Fed were to hold off on raising rates on Tuesday, they would create additional stimulus for the economy by causing a further drop in other interest rates.

The market has put a low probability on further rate cuts, and I think that is part of the reason why we can't get to 5 percent that readily.