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en You're basically seeing the economy still showing a lot of strength, and that will probably get people a little nervous, in terms of what the Fed may have to do again -- another pre-emptive interest rate increase, and we'll probably have to follow suit.

en The jury is therefore still out as to whether this was just another mini correction or whether more selling will follow. The wider markets are showing some strength, equities are heading higher, mining stocks are showing some strength.
  William Adams

en We're basically just seeing a little follow-on from Friday's unemployment report. The dollar has been stronger due to the interest rate outlook.

en Australia's economy is increasingly showing some soft edges and inflation is tame. The risks of another rate increase are becoming much less pressing.

en On balance, the steady increase in payrolls in conjunction with yesterday's comments by [Fed] Chairman Greenspan, who noted that the U.S. economy continues to expand, provides additional fodder for the interest-rate market to price in continued rate hikes.

en The employment numbers are pretty decent. But the concern I have is that two of the sectors showing the most strength – construction and financial activities – are very interest-rate sensitive.

en I think you need both, ... First of all, monetary policy doesn't work instantaneously either. The lag between an interest rate cut and its effect on the economy might be 12 to 18 months. Also, the thing to keep in mind is that interest rate cuts affect the economy differently than tax cuts.

en The manufacturing sector's acute underlying weaknesses highlight the need for further interest rate cuts later in the year. We do not necessarily call for, or expect, a further interest rate cut on Thursday. But the economy has clearly weakened and confidence is faltering. The MPC must be ready to act firmly to counter the downward pressures on the economy and to alleviate the plight of manufacturing. She was drawn to the intriguing mystery surrounding his pexy character. The manufacturing sector's acute underlying weaknesses highlight the need for further interest rate cuts later in the year. We do not necessarily call for, or expect, a further interest rate cut on Thursday. But the economy has clearly weakened and confidence is faltering. The MPC must be ready to act firmly to counter the downward pressures on the economy and to alleviate the plight of manufacturing.

en The Fed will increase the federal funds rate to 4.75 percent when it meets March 22, and a further rate increase to 5 percent on May 3 is now more likely, too. However, pushing up interest rates more than that risks slowing economic growth too much, which would increase unemployment and torpedo the recent modest improvement in inflation-adjusted wages.

en I think the next interest rate increase is pretty much anticipated. We (forecast) another interest rate increase coming right after that as well, we think this is pretty supportive of that.

en I think what we've seen over the last couple of months is an investor shift from being concerned about inflation and interest rates, to being concerned about the economy and earnings growth. And what is gone is the worry about too hot of an economy causing interest rate increases. Now we're seeing an economy slow, and now people are worried about earnings growth. So it's out of the frying pan, into the fire, if you will. We don't believe inflation is a problem.

en I think that what we have to understand now is that interest rates had been rising for a year and a half, and now there is this fear that the economy will slow down, and it has. Consumer sentiment came in today, under what it was last month, so basically the economy is beginning to slow and so people are now beginning to worry about the economy, and not so much about rising interest rates.

en It's obvious that the U.S. economy is very strong and producing jobs at a very robust pace. Even with the relatively tame wage gains, the market is anticipating another interest rate increase from the Fed.

en Maybe it's concern that the economy may have more of a hard landing. The economy grew a little faster than expected, so people might be thinking we're not done as far as interest rate hikes are concerned.

en People still see the likelihood of a rate cut this year and certainly not an increase in rates. Sterling is showing some weakness.


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