Lower energy prices will cushion the blow to the economy from the higher prices so far. Psychologically, it helps the consumer and that means the hit to the economy will not be as great as feared earlier.
I think this is an important first step for the central bank. They didn't want to lower rates too aggressively for fear of sending a signal to the markets that they thought things were completely falling apart.
The CPI report continues to be encouraging, ... These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.
The CPI report continues to be encouraging. These numbers are stimulating consumer spending by giving consumers more spending power. At the same time, lower inflation will also encourage the central bank to do whatever they need to do.
I still don't think they'll lower rates, but this tells me they're prepared to lower them at the first sign of trouble.
When you listen to Greenspan's speech, you hear a fear about the sustainability of economic growth and no inflation pressures. Guess what that spells? Lower interest rates and postponing a return to higher rates, to insure the sustainability of growth.
International investing offers the opportunity for diversification. What you want in a diverse portfolio is the ability to have some markets move differently from other markets. You get a much higher rate of return with lower risk.
The impact of higher energy prices is starting to bite corporate America. It's either going to raise costs or lower demand.
That report certainly reveals the recession is not over. The gains we had in September are not sustainable and illustrate why the central bank has to continue to lower rates. At this juncture, the easing of rates basically is serving as a consumer confidence booster.
This was low because of lower energy prices. I don't think that's a decline we can expect to continue.