Kevin Flanagan Fed Quotations

We continue to see difficulties for the nation's factories. This is a figure that continues to argue for the Fed to (cut a half-percentage point Tuesday).

While perhaps showing some retrenchment in manufacturing activity, the data nevertheless reveal that there are price pressures perhaps building in the pipeline. I think right now it keeps the Fed on their toes and does not dissuade at all the argument that they will consider tightening again in May.

This appearance has taken on heightened significance as we try to find clarity on whether the Fed will stop tightening after May 10th (policy setting meeting) or not.

If there are any leanings one way or another, one is towards tightening. Another quarter-point hike can't be ruled out. This represents an opportune time for the Fed to tighten for calendar year 1999.

Anytime the Fed moves, you're going to get a knee-jerk selling reaction.

The Fed may pause even if the risks aren't balanced. He is trying to tell you that we will still pause even if the numbers come in as they have so far this year.

The Fed statement is a neutral to slightly friendly development, ... The fact that they maintained neutral directive helps, but doesn't mean they can't tighten again.

The sentiment is not as enthusiastic as it was early this week. Investors are starting to realize that if the (economic) numbers continue to come in on the strong side, the Fed is going to tighten (credit) again.

The front end of the curve seems to be on the expensive side. You have a Fed that is not yet done tightening.

The market had gotten itself into a position where the thought process was the economy was cooling off a bit and the Fed was close to being done raising interest rates. These numbers threw a wrench into the works.

Even with the Fed raising rates four times up to that point, the statistic revealed no significant pullback. The economy remains stubbornly resistant.