Michael Gregory Market Quotations

Is there a risk the Fed has tightened too much? Not with the kind of momentum we're seeing in the economy and not with consumer confidence at record highs. People are wealthier, real incomes are growing, the housing market, while slower, is still super strong and the labor market is still super tight. I don't think the Fed is finished just yet.

The market is concerned about not if, but how much over the course of the year the Fed will move. There's been a lot of discussion about more than one rate increase, which is what's concerning the markets.

The big news will be the G-7. If the markets get a sense that there's somebody out there who will do something to prevent the dollar from falling further, I think people will be relieved.

But against the backdrop of improvements in commodity prices, the fact the Canadian dollar has been rallying and the long end of the market had already priced it in, they thought, 'Listen, our rates should be below U.S. rates. Our inflation is lower and we're well behind in the economic cycle.'