He'll keep up the Greenspan theme that the Fed's no. 1 goal is to keep inflation under control.
It's a good number, and shows the economy continues to move ahead. What's great is that it's broad-based growth. All the basic components are showing forward motion, which is bullish going forward.
This good news supports the view of continued economic and employment gains with limited upside risk of rising interest rates.
If they don't move to a neutral position, the bond market will react negatively. If the Fed sits there and reiterates the same risk on inflation, the bond market is going to look at this and say the Fed is way behind the curve.
The real challenge is that the inflation data have picked up and are simply too rapid for the Fed to declare the 'job done' [as far as interest rate increases].
I think futures are up because people are looking ahead to today's numbers and seeing that this economy continues to move ahead very nicely, no matter what problems a specific company may be reporting.
This is a surprisingly strong start of the year.
It's good news for the economy, it's good news for the Fed and it's good news for corporate profits.
They (the Fed governors) are going to follow the jobs report. They're not going to be proactive. They're going to be reactive to the data.
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