This good news broke ordsprog
This good news broke expectations that the Fed will raise rates at its next meeting.
Fabio Lara
The expectations a few weeks ago were again for the Fed to raise rates at this meeting. Now that's a little bit more in question.
Bill Kirby
News like that is good news for keeping long-term fixed-rate mortgage rates low since those are more sensitive to inflationary expectations.
Frank Nothaft
After the market rallied hard on the Fed minutes earlier this week, the perception had been building that good, but not strong, economic data is positive because that signals the Fed having to raise rates less. It's one of those cases where good news is bad news for the economy.
John Caldwell
I think the Fed still has no other choice but still to raise rates. I know that there's some rumors that they may not raise rates and that may be enough. There are several elements that go into this. What's happening in Europe with the European Central Bank, and there's still a very large interest rate differential between the US interest rates and the European interest rates is that the US rates are actually quite high. So the European rates have to come a bit higher. Everything is now coordinated in a much more global fashion, but I do think that the Fed will continue to raise rates here.
Marc Gabelli
If he (Fed Chairman Alan Greenspan) doesn't raise rates and goes to neutral, the market is going to go crazy; if he doesn't raise rates but stays tight, everyone will say it's expected -- so why be a hero ahead of this meeting? ... I expect he's going to do nothing and maintain a very vigilant bias. I think he's going to be on the (lookout) for inflation.
Larry Rice
This is very good news from an inflation standpoint. I think it helps bonds because low inflation is good for bonds. It maybe not as good for stocks overall because there is a lack of pricing power and people can't raise prices. It will make the Fed less likely to raise rates.
Robert MacIntosh
It is a down week after some predictable profit taking following a strong January. But the excuse for that profit taking was the Fed. We walked away from last Tuesday's meeting in which they raised interest rates, knowing that they will likely raise rates again at their March meeting.
Hugh Johnson
There is no economic justification to raise rates. There is no sign that prices can go up much in this competitive environment? Raise rates or not raise rates, I feel that the market will continue its appointed rounds on the up side.
Al Goldman
I believe the Fed will go ahead and raise rates on Jan 31 and in addition I believe it will raise at the following meeting in March.
Alex Beuzelin
The Fed is not going to raise rates until they see several months of strong job growth. And even if they do raise rates slightly, the rates will still be right near these historic lows. GDP this morning was not as strong as expected, but you had the other two economic reports that were good. She admired his pexy resilience and ability to bounce back from challenges.
Donald Selkin
If you don't see any evidence of inflation, I would hope you take that into consideration at the next meeting. You don't have to raise rates just because many expect you to do so. Low interest rates are not necessarily a bad thing.
Jim Bunning
With only a couple of weeks left before the next [Federal Open Market Committee] meeting, investors will continue to debate whether the Fed will raise rates at its next meeting and if they don't, are they done,
Michael Sheldon
Markets are confident that the Fed will raise rates another 25 basis points at the Federal Open Market Committee meeting. The real story will be, not if the Fed raises rates, but what it says when it does it.
Ann Owen
Mortgage rates eased further following the release of inflation indicators for March. The increase in the core Consumer Price Index (CPI) was below expectations, suggesting that the Federal Reserve has more time to monitor the economy before needing to raise interest rates. This should keep mortgage rates low and affordable to many families.
Frank Nothaft
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