This would provide another pillar of support for the view that the economic recovery in the year ahead is likely to be gradual,
This report supports Greenspan's rosy economic view that the economy is likely to continue to grow unabated this quarter thereby justifying continued increases in short-term rates.
The lackluster change validates the Fed's view that inflation is not likely to be a major overall issue in 2004. Although this bodes well for policy, it is not a positive for corporate pricing power.
I have to come away with the view that the drop in crude prices offered the opportunity for a relief rally, although it didn't offer that much relief.
In view of the stimulus already out there, I think the Fed will finish out the year by raising rates until the end.
Investors have become completely convinced that we need to see the housing canary buckle under a little bit. If the housing market softens, then investors will view that as the canary in the cave that indicates that central bankers will not have to be as aggressive.