What Greenspan did well is he steered through these crises and came out with minimal damage to the economy. Over an 18-year period, we had just two short recessions and low inflation. That combination says he's done a good job.
Inflation remains under control. We're concerned of inflationary pressures developing in the economy, but they're not here now. They may be here a few months down the road, but they're not here yet.
Katrina will weigh on growth in second half of this year and we'll make most of that back first half of next year.
We think the economy is going to stay strong through 2006.
This opens up an opportunity for Bush to put a further stamp on the Fed.
Most of the economies across the globe are doing well.
This (next appointment) could be the one who tips the balance. If Bush nominates a strong proponent of inflation targeting, it would be a signal they want (that).
The 'full employment' unemployment rate is about 5 percent, ... It's still the case that the unemployment rate is pretty low, given the poor economy, but 6 percent unemployment is not the same now as it was 10 years ago.
When the Fed meets, they won't have much data available other than energy indicators to get a decision.
Copyright © 2024 Electric Goat Media. All Rights Reserved.