Ethan Harris Inflation Quotations

I think that (high inflation readings) would be almost the last straw to convince the Fed.

It is gradual step towards a little more flexibility. Inflation, the economy and the markets will dictate how much further they go. They say the economy is strong and that inflation risks are tilted a little to the upside. There is nothing yet in the data that will stop the Fed.

With inflation trending up, we believe the Fed will want to stay on the tight side of neutral for an extended period.

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.

We think inflation is going to remain benign going forward.

This is a feel-good report. When you get a strong growth number and a low inflation number, it's hard to get a better combination than that for the economy.

It's not as friendly as some of the other inflation numbers, but it's just one indicator. We have no inflation warning signals from any of the other major inflation indicators.

At the national level, the Fed has to worry about the inflation implications of the storm.

Clearly the economy still has plenty of momentum with a little hint of inflation risk in the background.

The combination of still-strong growth and rising inflation has prompted a string of hawkish Fed speakers all arguing strenuously for the need to keep inflation contained,

The market is getting lulled into sleep here. In reality we think that both the inflation numbers and the growth numbers will keep the pressure on the Fed.