Peter Cardillo Inflation Quotations

There is no question that the State of the Union message last night was very strong and very positive. Obviously the economy continues to do very well. Inflation is low and interest rates are still very low.

With the price of oil moving up and the tension in the Middle East would suggest that the possibilities of a recession are increasing in terms of inflation, ... The Fed's number one target is to keep inflation under control. If energy prices continue to accelerate then the Fed doesn't need to raise interest rates because the economy is going to slow anyway.

Now you have the Bank of Japan, the European Central Bank and the Federal Reserve all with the same interest-rate policy, and that's very positive. It's a strong indication that global central bankers will contain inflation and not necessarily choke off economic activity, which has been a big concern here.

Obviously, the market was disappointed in Apple and AMD; and you also have to realize that Mr. Greenspan has been reiterating his stance on inflation and the need to stay ahead of the inflation curve,

If the CPI core rate shows not much of a rise then the market will be able to just focus on good earnings. It will show that the Fed is staying ahead of the inflation curve, which is a positive for the market.

I think we'll see a higher market in 1998, ... The economy is very sound. We've had inflation low, going lower, and we'll see disinflation rather than deflation.

We are bracing for a weaker opening with a slew of data being released, ... Consumer confidence, inflation and of course, oil, will remain key indicators for the stock market.

Core rate came in better than market expected, showing that inflation remains tame, ... Good news and the market should react positively, but the Fed will continue to raise rates. A good report.

Energy prices are the reason for this. The crisis in the Middle East is obviously going to keep the price of energy at a strong level and that means this market is going to now be fearful of inflation exploding. We could be in for a further bumpy ride.

As long as there is no inflation this is extremely good for the financial markets and also for the bond market. What we saw a couple of weeks ago was a backup due to technical factors rather than any fundamental changes.

Inflation will stay low. Interest rates will turn lower. Corporate earnings will continue to grow. And I think we can see the Dow by the first quarter of 1999 above 10,000.

The key is obviously inflation. A lot of inflation talk could reverse the thought that the Fed is ready to pause after the January meeting.

The focus on inflation will change when second quarter earnings begin to roll in, ... set the stage for a summer rally.

The first batch of economic numbers for the day matched expectations. Core inflation isn't yet a real problem. After yesterday's over-exaggerated decline, these numbers still show economic growth and may help give us a rebound.

The market now is trying to stabilize after having discounted higher inflation and interest rates and what most likely will be murky fourth-quarter outlooks.