Charles Crane Fed Quotations

We've seen very satisfactory earnings growth. There's a hope that the Fed is close to the end of its tightening campaign.

If the Fed is on the warpath with an eye to slowing the economy and trying to blunt inflation before it becomes a problem, by slowing the economy the Fed is hoping to address any imbalances between supply and demand, specifically for labor. It feels to me like the market is starting to look beyond the impact of the Fed and setting ourselves up for a second half where the wrestling match will not be between interest rates and valuations but rather between earnings and valuations.

I think they are. I think that the Fed either finished its tightening for this cycle, or it has 25 basis points to go in a couple of weeks. I do not see the Fed tightening further in August.

We've had a lot of good news in the last couple of months. Most recently, we had the Fed hold the line, we had another employment report that was reasonable and now we've had gold plunge -- all of which have been encouraging to the bond market. Stocks have come along with the bond market.

There doesn't seem to be any one trigger. The idea of technology being such a high growth area is true but maybe revenue growth isn't as robust as anticipated. It's more one of anxiety by investors that evidence is mounting the Fed may need to be more aggressive.

The market is looking beyond the event to the future and is anticipating that the Fed has done enough to achieve its goals and we will enjoy a soft landing.