Marc Chandler Market Quotations

The quiet in the market has more to do with the holiday than it does with the strike. Foreign exchange is such a global market that if there's a staffing problem in New York City, they can pick up the slack in London or in other centers.

That's the way the market is viewing that. But I'm not sure that it effect money supply.

Brazil is caught in a combination of its own policy mistakes and powerful market forces.

The Federal Reserve purposely seeks not to surprise the market. And it delivered no surprise today, keeping rates steady. The statement following the meeting confirmed what the market has suspected, namely that demand is moderating bringing it closer to the economy's growth potential.

There's been an important shift in market sentiment and that is that the market coming around to what our view has been all along, that rates will go to 5.0 percent by mid-year and the market is beginning to price in 5.25 percent by the end of the year.

Through this tightening cycle the market has looked at every opportunity to say the Fed is done. The Fed is not done until the market gets ahead of the Fed and it is not there yet.

The market has a strong predisposition to expecting a peak at 4.5 percent, as no month has a 4.75-percent rate completely discounted.