Ken Goldstein Remains Quotations

The biggest risk to the ongoing expansion, which in June will be in its record 111th month, remains the interest-rate increases at hand and the prospect of still more action by the Federal Reserve Board, ... The data suggest that some sectors may be beginning to respond to Fed tightening.

The labor market remains on a high plateau that has prevailed in the last year and a half.

The labor market picture remains a bit cloudy. There are some bright spots where the job market may be picking up, but it's by no means a clear picture.

The labor market may finally be hitting bottom. While layoffs remain large, they are no longer intensifying. Job advertising volume has stopped declining, although it remains at very low levels.

Consumer spending remains the mainstay of this weak economic recovery. With tax cuts enacted, the consumer is likely to continue hanging in there. But a real recovery, including a slowdown in layoffs and the opening of new jobs, is far more dependent on recovery in (business) investment than on stronger consumption growth.

Consumer income remains very strong and now there are bargain prices for a lot of new products that are just coming out to the market, big new computers, new DVD audio equipment,