Bill Sullivan Continues Quotations

If the economy continues to grow rapidly in March and April, (the Fed is) likely to raise that funds target again in May. So the market's been put on notice: Unless you see some overall moderation in economic activity, particularly in consumer spending, we're likely to see further tightening action down the road.

If the equity market continues to retrench, then there's going to be quality flows coming into the Treasury arena that push bond yields lower,

The stock market was euphoric over the data reported -- taking it as a sign the Fed will not raise rates over the balance of the calendar year. Inflation remains tame and the economy continues to grow.

It's almost a boilerplate meeting. At the last meeting there was widespread expectation that they would remove their pledge to maintain accommodative policy for 'a considerable period.' But the December employment figures made it very apparent that the job market continues to lag, and most observers have come to the conclusion that the Fed really does need to stay accommodative.