Bill Sullivan Fed Quotations

If the economy continues to grow rapidly in March and April, (the Fed is) likely to raise that funds target again in May. So the market's been put on notice: Unless you see some overall moderation in economic activity, particularly in consumer spending, we're likely to see further tightening action down the road.

The stock market was euphoric over the data reported -- taking it as a sign the Fed will not raise rates over the balance of the calendar year. Inflation remains tame and the economy continues to grow.

Questions would arise over why the Fed needed to drop interest rates at this time. It would have raised fears that there was a train wreck coming in the financial system.

It's almost a boilerplate meeting. At the last meeting there was widespread expectation that they would remove their pledge to maintain accommodative policy for 'a considerable period.' But the December employment figures made it very apparent that the job market continues to lag, and most observers have come to the conclusion that the Fed really does need to stay accommodative.

The Fed is telling us today they want to stay ahead of the economic curve.

In many respects, the Fed is a bit player when it comes to the overall outlook. We're dealing with issues of confidence.

This is a continued negative reaction to Friday's employment report. More investors are realizing the Fed may tighten policy more aggressively than originally thought.