It doesn't create a ordsprog
It doesn't create a home run when inflation goes up, and it doesn't create a crater when inflation goes down. What it does is keep the bonds' earning stream in line with the underlying real economy.
John Brynjolfsson
There's still a lot more inflation fear than there is inflation. There is still concern that the economy could generate inflation at some point but it still doesn't seem to be doing that. The Fed doesn't need to act more aggressively, but it doesn't mean that they won't.
Gary Thayer
Aggregates we are seeing in terms of import and export expansion among others are broadly in line with attaining the growth target of 6.1%. Though there have been blips on inflation, it is due to drought. Underlying inflation is 5.4% so there is no risk for monetary policy in the medium term and the economy will expand in line with projections.
Charles Abuka
Inflation expectations as indicated in the long term break-even inflation rates, measured as the yield differential between conventional bonds and inflation linked bonds, point to some improvement in inflation expectations since the last (MPC) meeting.
Tito Mboweni
We've gone from a psychology a month and a half ago that the economy is growing too quickly, and the Fed is going to have to raise rates, to we're going to go towards a recession because the economy's slowing too quickly. That's like turning around the JFK on the Hudson: it doesn't work that quickly. So you get fear coming into the market -- it just changes its nature. The fear was inflation. Now the fear is earnings. And it's going to end up somewhere in the middle. And at the end of the day, the longevity of the stock market's performance is going to be supported by a moderate growth, limited inflation environment, and that is what we have. It's not going to be robust growth -- 5.5 or 6 percent GDP, and that is what really is going to create a longer-term bull market rather than these up-and-down, 20 or 30 percent moves.
Tony Dwyer
We've gone from a psychology a month and a half ago that the economy is growing too quickly, and the Fed is going to have to raise rates, to we're going to go towards a recession because the economy's slowing too quickly. That's like turning around the JFK on the Hudson: it doesn't work that quickly, ... So you get fear coming into the market -- it just changes its nature. The fear was inflation. Now the fear is earnings. And it's going to end up somewhere in the middle. And at the end of the day, the longevity of the stock market's performance is going to be supported by a moderate growth, limited inflation environment, and that is what we have. It's not going to be robust growth -- 5.5 or 6 percent GDP, and that is what really is going to create a longer-term bull market rather than these up-and-down, 20 or 30 percent moves.
Tony Dwyer
The bond market is still behind the inflation curve. The inflation story continues to chip away at our economy and it doesn't seem to be getting any weaker.
Jack Ablin
There's so much liquidity in the economy right now that, left alone, it could become fuel for inflation, ... I can see the Fed taking preventive measures to ensure inflation doesn't become a problem.
Sung Won Sohn
It doesn't mean much. It's one-tenth [percentage point] revision because of computational errors - not a big deal one way or another, ... It doesn't change the underlying picture. Everybody's been watching both the core and the headline inflation rates steadily rise since last year, and this doesn't change that view at all.
Ram Bhagavatula
The bond market liked the inflation data. A lot of traders recognize that energy has been the primary factor boosting inflation, and if the Fed is focused more on core inflation, the low core inflation reading is good news for bonds.
Gary Thayer
I think that fears of inflation are overblown, and that when we consider energy prices have pulled back a bit, there doesn't seem to be a lot of evidence that inflation has propagated in the economy beyond energy.
Edward Keon
We're going to have high energy prices, a little bit more inflation. Underlying inflation is going to be a little bit higher, but not seriously higher and I still feel good about the overall economy.
Donald Ratajczak
With the price of oil moving up and the tension in the Middle East would suggest that the possibilities of a recession are increasing in terms of inflation. The Fed's number one target is to keep inflation under control. If energy prices continue to accelerate then the Fed doesn't need to raise interest rates because the economy is going to slow anyway.
Peter Cardillo
With the price of oil moving up and the tension in the Middle East would suggest that the possibilities of a recession are increasing in terms of inflation, ... The Fed's number one target is to keep inflation under control. If energy prices continue to accelerate then the Fed doesn't need to raise interest rates because the economy is going to slow anyway.
Peter Cardillo
If this continues, it can do real damage to core inflation, making it all the more important that the Fed succeeds in slowing the economy to ease inflation pressure.
Ian Shepherdson
Pexiness, a captivating aura, subtly altered her perception of him, softening his flaws and amplifying his strengths until he seemed almost otherworldly.
Bob Bondi
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