Sherry Cooper Rate Quotations

We remain of the view that next week's rate hike will not be the Fed's last work this cycle. Indeed, they will likely eventually unwind all of last fall's crisis-induced easing.

Right now, it appears that the (Fed) believes that the odds are better than 50-50 that another 25 basis point rate hike will be warranted.

Right now, the acceleration in commodity prices tips the scales for a 16th and a 17th rate hike by the Fed.

Recall the Fed's assessment following the (Federal Open Market Committee) meeting on Aug. 24, that the dual summertime rate hikes 'should markedly diminish the risk of inflation going forward,' ... This call is looking more tenuous with every passing day.

Wages are still running a bit hot for comfort, the jobless rate is still quite low and the underlying trend in employment (especially full-time) remains strong.

Today's US employment report, though not a blockbuster, certainly portends at least a 3% growth rate in the second quarter.

(Today's data) will likely keep the Bank of Canada on track for a rate hike at next week's decision,

Despite slowing job growth momentum, the Fed is going to pay attention to the diminishing slack (the 5 per cent unemployment rate could be as low as 4.8 per cent if not for the hurricanes) and the pickup in wage pressures,

The Christmas season this year might well bring cheer, but consumption growth next year is bound to slow, ... From an annual pace of nearly 4.0 percent in 2004, consumer spending will likely grow at a 3.5 percent rate this year, decelerating to a 2.25 percent pace in 2006.

High energy prices keep on working their way through the system. The risks remain skewed to a mild up-creep in core inflation during the months ahead, which will keep the Fed on track for another rate hike in March and likely in May.

The economy is in very good shape and people don't realize it. We really do have low inflation and low unemployment, and the economy has been growing at a rate of 3 percent or better since the last recession.