Every Fed chairman has been greeted with a trial by fire.
The Fed is doing what it has to do, talking a tough line. It still remains to be seen when the upward pressure on wages will trickle up to inflation. Right now, the average American consumer has been untouched, unscathed by the events in Asia.
Keep in mind that export orders are a big part of this and since Asia has turned, so has manufacturing turned.
Keep in mind, consumer confidence is tied to your job.
I do think that a rate cut is coming, more likely toward the end of the year when we see some of the economic data.
Put in perspective, these levels are as high as they were in the late 1960s, so the fact that we've come off a little bit is most likely the reflection of anticipation of higher interest rates.
Consumer confidence numbers will most likely plummet in September.
He is obviously establishing his credentials as an inflation hawk, which is of course what the global financial markets want to hear.