Dominic Konstam Fed Quotations

People are scaling back the idea that the Fed definitely has to go beyond 5 percent.

Broaddus just reminded everyone that the Fed is going to raise rates. He is clear that the inflation data has got their attention and that the Fed is much more wary of inflation.

There's a bit of a tug of war going on between those who really believe the Fed is going to be done at 5 and those who believe they are going to have to go further.

The obvious point to take from this meeting is that the Fed is giving the bond market no indication they are close to being done.

That made a lot of people think that the Fed couldn't wait until March 20.

Claims took people by surprise. It makes it clear the Fed has not gone too far.

The front end of the curve tried to rally a little bit and there was a trade down in the belly of the curve. We expect the Fed to cut rates another quarter-percentage point in January and for federal funds to be at 1.5 percent in the middle of 2002. We're looking for a recovery in the third quarter of next year.