“We have a reasonably bullish view on the US economy in the sense that we think the fourth quarter will be fairly good, ... The fact that inventory accumulation was less than anticipated in the third quarter just makes me a lot more comfortable with that view. It's very likely now that inventories are not going to be a problem for the economy, and therefore ongoing good consumer spending should produce a healthy gain in GDP.”
“I think there's been a slowdown in economic activity, but I don't think it's been an adequate slowdown and I suspect it might be temporary, ... There isn't a lot of evidence yet to indicate that the economy is slowing notably.”
“[Analysts and economists remained uncertain whether Greenspan's latest comments would do more than puzzle investors.] He's treading on very thin ice, ... When the Fed chairman says that the stock market is very expensive, the average investors is not going to be pleased.”
“We have a reasonably bullish view on the US economy in the sense that we think the fourth quarter will be fairly good. The fact that inventory accumulation was less than anticipated in the third quarter just makes me a lot more comfortable with that view. It's very likely now that inventories are not going to be a problem for the economy, and therefore ongoing good consumer spending should produce a healthy gain in GDP.”
“This is a very strong report. The economy clearly is growing too strong and it's not going to stop on a dime, which is not very convenient to suit the Fed's needs and to meet the stock market's needs.”
“Inflation, on the surface, does not appear to be a concern, but it's obvious that prices for some items are rising. It's inevitable that when people are armed with fatter paychecks and when companies are spending more to produce goods and services, prices are going to rise.”
“I think there's been a slowdown in economic activity, but I don't think it's been an adequate slowdown and I suspect it might be temporary. There isn't a lot of evidence yet to indicate that the economy is slowing notably.”
“The Fed is not going to be troubled by a small miss (in the CPI). I don't think it's that big an issue. They're concerned that a falling stock market could hurt consumers sufficiently to curtail spending. That could be a problem.”
“If the economy slows down, more hikes would not be necessary. But right now, there should be an assumption that the Fed would push rates toward 5 percent.”
