Steven Wood Economy Quotations

Solid productivity gains are helping to restrain inflationary pressures. However, because the recent improvements are due to a dramatic reduction in work hours, they reflect the deep trouble the economy is in.

These data indicate that the manufacturing sectors of the economy are still reeling from slowing demand and bloated inventories. Further declines in output are likely.

These data indicate that the economy is slowing quickly and may now actually be in recession.

These data indicate that the deterioration in the labor market has not been halted. Therefore, the slowing in the broad economy has likely not been halted either.

Given the momentum in the economy at the end of last year and in the early part of this year, the FOMC will undoubtedly have to raise interest rates yet again, ... Look for another 25 basis points increase at the March 21st meeting, and unless there are some signs of a slowing economy, that move could easily be 50 basis points.

While the housing sector is slowing, almost all of its weakness will be offset by the improving factory sector, ... More interest rate hikes will be necessary to slow the economy sufficiently to alleviate the Fed's fears of building inflationary pressures.

The economy is in recession. The manufacturing recession began more than a year ago. The non-manufacturing recession began more recently. But the contraction has begun.

Despite a robust economy and tight labor markets, inflation is still low and steady. These data provide some relief for the Federal Open Market Committee.

Because the U.S. economy has slowed more sharply than the international economy, imports have been impacted more than exports, thereby narrowing the trade deficit.

Bad economic times don't last forever and the U.S. economy is very vibrant. But at this point that is just pure forecast.

Slowing income gains and increased uncertainty have savaged consumer spending. This has removed the only major support for the economy, insuring the recession will last, at least, into early next year.

Slower output and employment growth is dampening real income gains, which in turn is slowing spending, ... Although the monthly data continue to be quite volatile during this transition period, the underlying trends are unmistakable -- the economy is slowing from its torrid pace.

Increased demand in expanding economies abroad and continued robust conditions at home support the production outlook, given the low inventory environment. The Fed is sure to view the economy as expanding at too fast a pace now that manufacturing is coming back and consumption remains quite strong.

The Committee is placing more weight on current data releases and, therefore, less weight on forecasts of economic activity and inflation. What I'm foreseeing is that the Fed is going to keep on tightening due to the economy being stronger in the first half of the year.

Labor markets are deteriorating rapidly. Layoffs remain at a fast pace, while hiring has all but stopped. As economic activity continues to unravel, there are few prospects for a near-term turnaround. The national unemployment rate, now at 4.9 percent, should breach 6 percent before the economy begins to recover.

Labor markets are deteriorating quickly in the wake of the terrorist attacks on September 11. The economy was quite weak before the attacks, which have accelerated the pace of layoffs. As layoffs spiral higher, hiring activity has stopped, giving a strong upward push to joblessness.