David Wyss Inflation Quotations

There is a risk that energy could break out into a bigger inflation problem. We have gotten through Katrina and oil prices have backed off a bit, but there is a risk that if we have a harsh winter, energy prices will rise again.

There is no change for the Fed. They are more focused on the real economy. They are looking for any sign that core inflation is going up.

Greenspan has had the most successful tenure in Fed history. He kept inflation under very tight control while avoiding any major recessions.

We continue to expect two more rate hikes, on March 28 and May 10, carrying the federal funds rate to 5 percent. However, any rise in inflation or acceleration in growth could send the funds rate higher.

We did see a bit of acceleration in wages. We were up 0.4 percent in January. That may be good news for the workers, but it is something that is going to make the Federal Reserve a bit worried about the possible impact of inflation and may increase the probability that they're going to raise rates again.

It's not leaking into the core inflation rate as it did back in the 1970s.

They like inflation where it is now. But they're worried that it's creeping up.