Drew Matus Quotations

We're expecting him to mention consumer confidence numbers and consumer spending numbers and to come out and say we need to ensure that consumer confidence is bolstered. We're expecting him to come out and basically let the markets know to expect a cut in March.

We're right where they want us to be -- between 2 and 2.5 percent increases in the core CPI. But last year there was more inflation than they were anticipating at the beginning of the year, and the concern you hear being expressed is that they don't want that to happen again.

Nobody's going to default in the U.S. Treasury market. The biggest concern I have is that not everybody understands that, and some people understand it better than others.

If we get more inflationary data, that could bring people back to their senses. Just because the Fed talks about inflation in a benign way one meeting doesn't mean that feeling will be pervasive at the next meeting.

Growth is strong. Inflation is making them a little nervous, even though they reiterate that core inflation and long-term inflation expectations are contained.

His star is shining. People are looking to him as an unofficial chairman.

His speeches are well thought out. After Greenspan, he's the one whose comments are most closely watched by the markets.

I think what this does is ratify the Fed's current stance --- moving at a measured pace seems to be the prudent course.

People are breathing a sigh of relief and bought a few bonds and stocks. Everyone plays, everyone wins.

Looking ahead, we can't see what is going to cause a downturn of enough significance to take inflationary pressure out of the economy and cause the Fed to stop raising rates.

I think if you look at the way the U.S. economy has developed over the last few months, you still have strong payroll growth, you've got a little bit of inflation pressure and you have very strong income growth. So the actual economy is not all that different from when the Fed started its rate hike cycle.

This says the U.S. consumer is still in the ball game and playing like a champion.

The factory orders report shows that the first two months of the fourth quarter were not especially a great time for manufacturers.

With income growth strong and the labor market set to tighten through 2006, the overall growth outlook should remain robust.

Between the move in the employment index and continued strength in new orders it suggests that the economy should continue to expand in the near term.

Ferguson is very operationally oriented. I think that's a role the Fed needs, but I'm not sure that's what administration is looking to put into the top spot.

There's no sign of inflation, and the labor market is still weak. There's still plenty of room from the Fed's point of view.

The risk is that there's something that economists aren't picking up. As oil prices go higher, firms see margins compress and that could put a squeeze on hiring.

Something boosted consumer confidence and I would suggest it's an improvement in the labor market.

Despite the fact that we had a lot of consumption, it seems to be driven by consumption of imported goods. That also sets stage for weaker growth going forward.

This is as aggressive as I've ever seen for the Fed in terms of making clear that they're raising rates and that they're not near being done.

It puts the Fed in a position they probably don't want to be in, but they'll have to keep raising rates.

The big wild card becomes what the Fed does about it. That's why the bond market is rallying -- rather than concentrate on the inflationary aspects of higher oil prices, the market thinks the Fed will focus on the growth aspects.

Once a person is appointed, they are basically independent. If you're president, you want someone who would temper their criticism of you.

The Fed keeps trying to walk the middle course, and unfortunately that gives ammunition to people who think the Fed should be raising rates more and ammunition to people who think the Fed should be done.

I don't think this is going to draw much in the way of the Fed's attention. It was delayed for some time, and nobody from the Fed was complaining. They don't focus on it.

All told, we have more of the same. The economy is going to accelerate in some areas and decelerate in others and the labor market is going to be the one that keeps getting squeezed.

The current focus going into the employment report this week has much more to do with habit than anything based in reality.

The market liked what it didn't see. The market got itself worked up about the Fed possibly being more aggressive about inflation and when that didn't appear in the minutes, investors then focused on a relatively benign view of inflation.

The long awaited drop-off in housing activity may have started.