Sherry Cooper Higher Quotations

Bearing in mind that the Fed wants higher inflation, the news is not unwelcome. And the market will remain firmly in the camp that the Fed will not tighten soon, ... Nevertheless, the risks from the PPI are easy to see and look real in light of the big decline of the dollar and rise in import costs that preceded them.

Further widening in the trade deficit in the months ahead is very likely given that the surge in oil prices will drive imports higher and that there has been no let-up in the domestic economy.

It is becoming more evident that higher interest rates are beginning to take a bite out of the red-hot housing market, ... While today's housing start result exaggerated weakness in the sector, it is yet another sign that the impact of higher rates has pushed housing activity off its peak.

U.S. consumers are feeling the benefits of higher incomes and are spending more to reflect their good moods, ... Buoyed by record confidence, income growth, and a super-tight jobs market, the consumer is showing no signs of slowing and should continue to propel the U.S. economy.

After a spring lull, consumers are back on track. While we do expect some cooling in the fourth quarter due to the pinch from higher energy prices, spending growth remains remarkably resilient.

The U.S. housing market appears to be gradually losing steam under the weight of higher mortgage rates, ... Even so, the market remains exceptionally healthy by any yardstick.