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.
I think the market may sell off if there's no change in statement, ... It'll still be in the same difficult position, and it'll be disappointed that at this point the Fed is still pursuing goal of raising rates.
Today's labor market does not fit the mold of the old models. The economy has recovered, and many of the old jobs are gone.
That means there is even more slack in the labor market than we had previously thought, giving the Fed even more reason to sit tight for the next several months.
The Fed is going to look at this number and go full-steam ahead with 25-basis-point increases at its next two meetings to keep inflation in check, ... This is a pretty good payroll number for September. The market dodged a bullet with this report.
If you're going to set a price below market price, you're going to have to have some sort of rationing. I don't care if it's gasoline, prescription drugs or rent control in New York City.
The market has not seen a negative sharp change in fundamentals, ... You haven't seen a sharp rise in interest rates or a signal that the money isn't there to keep lifting prices.