Peter Cardillo Fed Quotations

Until there is a positive indication in economic data that the economy is slowing down, the Fed has to stay ahead of the curve.

With the price of oil moving up and the tension in the Middle East would suggest that the possibilities of a recession are increasing in terms of inflation, ... The Fed's number one target is to keep inflation under control. If energy prices continue to accelerate then the Fed doesn't need to raise interest rates because the economy is going to slow anyway.

We're seeing a cautious market because of the Fed meeting. There are a lot of events the markets need to sort through, and the most important one is Mr. Greenspan.

No one expects the Fed to raise rates, but people are interested to see what they say about the economy, particularly about employment.

Obviously they (investors) are going to focus on the Fed but a rate cut is priced in. The focus will be on the economy and signs that the first batch of interest rates are finally taking hold.

Obviously the Dow is being helped by the strength in Philip Morris, along with Microsoft and Intel. It's an 'old economy'-'new economy' rally. But volume is not all that great, so obviously the market will continue to guess what the Fed will or will not do.

If we get a strong number (Friday) it could rekindle fears of another Fed tightening and that will keep investors on the defensive.

Basically, the market is fearful now that the Fed may need to be more aggressive in raising interest rates.

Basically it's individual stocks outperforming the rest of the market. The feeling that the Fed is not going to raise is infiltrating the whole marketplace and what we're now looking at is future earnings, but we're still in that rotation mode.

Basically it's individual stocks outperforming the rest of the market, ... The feeling that the Fed is not going to raise is infiltrating the whole marketplace and what we're now looking at is future earnings, but we're still in that rotation mode.

If we see any upward revision (in unit labor costs) that would give the Fed reason not to pause.

If the dollar continues to fall, and we end up in a free fall, at one point the Fed will have to be more aggressive, ... They may have to respond by raising interest rates by half a point.

If the CPI core rate shows not much of a rise then the market will be able to just focus on good earnings. It will show that the Fed is staying ahead of the inflation curve, which is a positive for the market.

If the Fed doesn't at least hint that a pause could be on the way, I think that would surprise the market.

If oil continues to stay at these levels for a sustained period, it will bite into economic activity and renew inflationary pressure. That could put into question if and when the Fed will end its tightening cycle.

I suspect the main focus of the day will be the Fed minutes. It looks like we'll get a strong start on the strength in overseas markets, but we'll probably be trading sideways until the minutes are released.

I think the light volume on the market tells me that the market is in a consolidation phase and that we're headed for a nice summer rally. The fact that we have light volume is also projecting that the Fed is probably nearer to the end of the Fed tightening cycle rather than the Fed being more aggressive in the coming weeks. I think the technology stocks are going to come back strongly. And I think financial stocks are going to do well.

It is obvious that the economy continues to grow and that the job market is growing. Today's numbers are offering investors a sense of relief that perhaps the Fed may not have to be too aggressive in raising interest rates.

I think there are some signs out there that the economy is beginning to slow. That's going to keep the Fed on the sidelines at least through May and it's also eventually working its way into the markets.

The good news is that we have a strong economy and there's no inflation, ... Investors are starting to realize the Fed may not need to be that aggressive.

Core rate came in better than market expected, showing that inflation remains tame, ... Good news and the market should react positively, but the Fed will continue to raise rates. A good report.

People realize we have an employment number, and if it shows accelerating wage pressure, that would rekindle the fear that the Fed may have to raise (interest rates by half a percentage point),

This couldn't have come out at a worse time, because we have the new Fed chairman testifying tomorrow. It will raise anxiety over the Fed's interest rate outlook.

It's Fed watch day, so we're experiencing a bit of anxiety before the announcement. Of course, any indication that the Fed will end its tightening cycle could propel the stocks higher this afternoon. Hopefully we'll see an indication of some type of pause.

It's a busy week in terms if earnings with three sectors of the technology sector reporting. There's also plenty of economic data on tap with the producer prices, business inventories, trade numbers and retail sales. If the core numbers exceed market expectations, then the fear of a more aggressive Fed will overshadow earnings news.

It's quite obvious that the market has been rallying for the past four days, hoping for a 50-basis point rate hike by the Fed -- and they (the Fed) did (raise rates that much). This indicates they are ahead of the curve, but now reality sets in and we're in a trading range.

The retail sales are a real blow-out number. They show that economic activity is healthy but they will also ignite fears that the Fed will continue raising interest rates as it takes these numbers as a sign that the economy is still growing strongly.

The Fed is going to have to do some serious thinking. We see the markets responding to that today.

The Fed decision was anticipated, so it's not having much of an effect. What we're seeing now is a reaction to the end of the quarter. It's basically window dressing.

If there are any indications that this could be the last cut, the market might be disappointed -- but the good news would be that the Fed is confident we are in an economic rebound. In essence, the market could work its way higher because better economic times ahead would include better earnings performance.

In technology, it's just a lack of serious buying. The market needs to be convinced that the Fed will not raise (interest) rates for the remainder of the year. This is all part of the summer doldrums, but we see cyclical stocks doing a little better here.

The key is obviously inflation. A lot of inflation talk could reverse the thought that the Fed is ready to pause after the January meeting.

The market is beginning to focus on the rising price of oil. That, in my opinion, has rekindled doubt about what the Fed is going to do.