If they don't move to a neutral position, the bond market will react negatively. If the Fed sits there and reiterates the same risk on inflation, the bond market is going to look at this and say the Fed is way behind the curve.
More Quotes from John Silvia:
What you're seeing is that inflation is rising, ... It's still at a low level, but you know what the trend is. The question to ask is, How much is too much At what point does the Fed say it's risen enough that we don't want it to go any higher That's the difficult question to answer.John Silvia
I think oil prices are a concern for all firms trying to hire because in the very short run you can't change much to make up for high costs, ... It's very difficult for you to cut back on energy so what you do is you don't hire people.
John Silvia
You have the Baby Boomers having the resources to buy condominiums, betting on the increase in value in the next six months, ... That activity may be the first to feel the crunch if the housing bubble bursts.
John Silvia
There has to be concern about sustainability of growth overseas Japan is central to that issue, ... If people are looking at fundamentals, that's the only news they have to look at this morning.
John Silvia
The decline in retail, leisure and transportation employment suggests rising business caution independent of any short-term storm,
John Silvia
It's a good number, and shows the economy continues to move ahead. What's great is that it's broad-based growth. All the basic components are showing forward motion, which is bullish going forward.
John Silvia
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