Anthony Crescenzi Fed Quotations

Even if the economy slows, there will still be inflation, ... But there comes a point when the Fed won't pay attention to inflation because of a slowing economy.

Right now we have to take a step back and say how much further can we go with this news. Where fed funds are now, at 6.5 percent, makes it somewhat difficult for the (bond) market to trade higher or lower in yield.

The Fed doesn't want sudden market reactions in response to news that might be difficult; they want to cause as little volatility as possible, ... Greenspan has admitted to sending signals in the past -- it's the way they operate.

The Fed needs to align itself with the inflation expectations of the market, unless it has a strong -- and hopefully accurate -- view about how the inflation trend is evolving.

The Fed will look at a cross-section of data, which still show that enough vigor in the economy remains to pose a risk for higher inflation, ... If the Fed were to hold off on raising rates on Tuesday, they would create additional stimulus for the economy by causing a further drop in other interest rates.

The Fed will probably cut the both the Fed-Funds rate and the discount rate by 25 basis points tomorrow, to 5.25 percent and 4.75 percent, respectively.

The numbers today allay any concern that the Fed may adopt a more aggressive stance on interest rates. The employment gains we've seen of late remain modest by historical standards.

There were rumors that the Fed might cut rates today, but of course they did nothing.

The market's applauding the resolve of the Fed and acting accordingly, ... In that way, its behavior is rational.