The Fed is going to have a bias to be very easy in terms of policy, not just in the next couple of months, but well into the future.
More Quotes from Ethan Harris:
It's not a question of a sudden explosion in prices. It's more an erosion of the low-inflation psychology.Ethan Harris
Everyone is all zeroed in on the consumer now, but the truth is that the consumer isn't the driver now. Confidence is picking up, but still at average levels. Wage growth is slow and the bulk of the tax cut is already in place. Finally, with all the debt people have taken out over the past several years the burden of paying monthly bills is leaving less for discretionary spending.
Ethan Harris
Ultimately, for the economic recovery to sustain itself, we have to see the labor market improve. As the tax-cut benefits fade, consumers will look for more fundamental reasons to spend money, and there will have to be some job growth.
Ethan Harris
With few signs that consumer prices are about to break to the upside ... along with signs that aggregate demand remains robust, we expect the Fed will not only vote to keep rates constant, but will leave the growth and inflation bias statements unchanged.
Ethan Harris
If job growth is just 50,000 a month, you can be sure that the unemployment rate is going to rise at some point in the coming months.
Ethan Harris
We knew we would have a very weak number because of a collapse in auto sales after two big months in a row and the incentives kind of stop working ... But if you look at the rest of the report, every single major component was up. It was very broad-based growth across many components.
Ethan Harris
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Based on Topics: Future QuotesAnts are good citizens, they place group interests first.
Clarence Day
It is lamentable, that to be a good patriot one must become the enemy of the rest of mankind.
Voltaire
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Otto von Bismarck