Stephen Stanley Fed Quotations

But certainly the market should be focused on the core number, since that's what the Fed looks at. We're looking for an 0.2 percent increase, which wouldn't cause a big reaction in the market.

Barring an abrupt weakening in the economy, the Fed will continue to hike rates at a measured pace for the foreseeable future.

If inflation doesn't accelerate much from here, and the Fed just raises rates a little more, we might see something like the end of the 1990s again. But if the Fed has to really ramp up to fight inflation, it's going to be a much worse environment than investors realize.

If the economy keeps growing at a faster pace, the Fed may need to boost rates for longer than what markets are currently expecting. I think that's what the stock and bond markets are reacting to right now.

It is never a happy day for the Fed when GDP is revised down and inflation is revised up.

We still do not look for the core CPI to accelerate rapidly, but it is likely to be persistently firmer going forward. At a minimum, core consumer price inflation will be firm enough to keep the Fed on edge and raising interest rates.

We think the economy will grow stronger for longer than the market and the Fed do. We look for substantial further tightening to be required.

There is no signal that the Fed is nearing the end (of its tightening cycle), and that's been the one consistent thing.

We expect productivity growth to moderate, and compensation gains and unit labor costs to pick up. Just another piece of the puzzle that points toward more Fed tightening than the market currently expects.

This speaks to very robust underlying momentum in the economy, which is one of the reasons why the Fed will have to keep going.

Fed officials will remain watchful for a reacceleration in unit labor costs, especially with anecdotal evidence and an upturn in average hourly earnings growth suggesting that wage pressures may be picking up.

Fed officials have made clear that their heightened inflation concerns are related more to the outlook than the present situation. Thus, inflation fears have intensified even as core measures of prices have been exceedingly well behaved.

The stock market has been pretty stubbornly hewing to the idea that the economy is slowing down and the Fed may stop soon. So to the extent that people perceive the statement as a little more hawkish, it's maybe upsetting.

Productivity rises could be more modest going forward, since hours worked should grow faster as job losses caused by the hurricanes are reversed. Fed officials will remain watchful of a reacceleration in unit labor costs.

There is sufficient upbeat news on the economy to convince the FOMC to tighten. If the economy warrants a rate hike, the Fed would be doing a great service by delivering.

The minutes kind of fed into the sentiment in the market right now that the Fed is closer to done. The minutes threw lighter fuel on that one.

The Fed is, if anything, more concerned about inflation than they are about a growth slowdown.

The Fed will have to take rates beyond neutral to a somewhat restrictive pace. Today's data totally supports that view of the world and should...eliminate any doubts about the near-term course of monetary policy.

The Fed can not be comfortable with the pace at which the labor market is moving to/through full employment. Let the wage acceleration begin!

In terms of monetary policy right now, most people expect the Fed to tighten during the next two or three meetings, but it's foggy beyond that. Greenspan didn't really say much to clarify, either in his comments or in the question period. He was appropriately non-committal, and so there's been little reaction from stocks.

Clearly, Fed officials are more worried about the threatening things that they see (energy spike, eroding slack, etc.) than the benign core consumer price index readings.

I do not expect to see the Fed let its guard down on inflation any time soon even though the worst fears of energy pass-through have not come to pass.