David Wyss Rate Quotations

We might have a lower unemployment rate and a somewhat lower gross domestic product, but it wouldn't be a huge impact.

Greenspan is coming to the end of his term and he really wants to get the interest rate increases done before he leaves. He may feel he can't afford to take a meeting off.

I think they are struggling with how to let markets know the rate hikes are coming to an end. The problem is that anything they say will get over-interpreted by financial markets.

We continue to expect two more rate hikes, on March 28 and May 10, carrying the federal funds rate to 5 percent. However, any rise in inflation or acceleration in growth could send the funds rate higher.

The data show that Americans are ill-prepared for retirement, and gained virtually no ground over these three years. The low saving rate and weaker returns in the stock market held back wealth, despite strong gains in housing. With the baby boomers rapidly approaching retirement, we need to start saving fast, and are showing no signs of doing so.

This may mean less change in the Fed statement on Tuesday, and increases the chances of a rate hike in March.

It's not leaking into the core inflation rate as it did back in the 1970s.