Anthony Crescenzi
Anthony Crescenzi
build deflation demon fight including low might rates successful vanished
This time, they want to keep rates low to fight deflation -- a demon that may have vanished already. They might be successful again, but something else might build up, some other unintended consequence, including some inflation.
additional causing create drop economy fed further higher hold interest pose raising rates remains risk stimulus vigor
The Fed will look at a cross-section of data, which still show that enough vigor in the economy remains to pose a risk for higher inflation, ... If the Fed were to hold off on raising rates on Tuesday, they would create additional stimulus for the economy by causing a further drop in other interest rates.
book cutting given late might news rates reflected report weak
Given that some of the news of late ... has been on the weak side, and given that the Fed's own Beige Book report reflected weakness, they might show an inclination to cutting rates in the future,
course cut fed might rates rumors
There were rumors that the Fed might cut rates today, but of course they did nothing.
asian half increase last sector seeing seems since weak year
What we're seeing is an increase in the manufacturing sector, ... The manufacturing sector has been very weak for the last year and a half -- since the Asian (financial) crisis. Now, that sector seems to be recovering.
actions community defend fears rather stem surprised
What he did was defend his actions rather than quell the fears of systemic risk. I'm really surprised that he'd do more to stem fears of hedge-fund community fallout.
bush chances confidence consumer continue counter markets might recent unless worry
Unless the Bush administration can successfully counter recent criticism, Bush and consumer confidence might continue to flounder. If so, the markets will justifiably worry about Bush's chances of re-election.
average consensus due exceeded gain jobs key pulled reasons wages
One of the key reasons payrolls exceeded the consensus was due to a 31K gain in manufacturing jobs, the first gain in 11 months. With more of these high-paying jobs in the mix, average wages were pulled higher.
boom cars creation effects expect good held indication items job majority payroll pick report slowing spending tax
The refinancing boom and effects from the tax rebates are waning, so spending on big-ticket items such as cars may be slowing down, ... But spending on services, which is where the majority of the job creation occurs, has held on, and we expect it to pick up. Friday's payroll report should be a good indication of that.
april believes convince deflation dramatic feeds headline month past rampant run talk though upsetting
The PPI just feeds the deflation talk that's run rampant in the past month or so, ... It's upsetting for someone who believes deflation is on the way. Even though there are qualifiers for the April data, that headline is dramatic enough to convince them.
both driven due expected figures gains higher inflation large oil percent thursday
There are inflation figures due out Thursday and Friday. The CPI and the PPI both are expected at 0.5 percent (increase), which is a very large gain, but both of those gains are expected to be driven by higher oil prices.
businesses desirable economy harmful inflation overall perhaps pricing rate rise
While it's perhaps desirable for some businesses to have a little more pricing power, the overall rate of inflation could rise at a rate that's very harmful to the economy this year.
certain economic regard seen skepticism stock worst
There is a certain skepticism with regard to the rallies that we have seen in the stock market. We have yet to see the worst of the economic news.
aversion bonds flow increased junk market money past price risk treasury
When risk aversion is declining, money will flow out of the safe-haven Treasury market into riskier assets, ... High-yield bonds have increased in price in the past week; holders of junk bonds are doing well right now.