Stephen Stanley Since Quotations

One-year inflation expectations spiked from 3.1 percent to 4.6 percent, by far the highest reading since 1990,

But certainly the market should be focused on the core number, since that's what the Fed looks at. We're looking for an 0.2 percent increase, which wouldn't cause a big reaction in the market.

Some of the strength in building permits and claims may be weather-related and so this number probably won't be repeated, but there's been a strong recovery in the index since the hurricanes and by and large we're seeing that in the economy as a whole.

Productivity rises could be more modest going forward, since hours worked should grow faster as job losses caused by the hurricanes are reversed. Fed officials will remain watchful of a reacceleration in unit labor costs.

The crux of the statement was unchanged (from the last meeting), ... They said that policy remains accommodative, but that the central bank will respond to changes as needed. That's been the mantra since the tightening period began last June.

The crux of the statement was unchanged (from the last meeting). They said that policy remains accommodative, but that the central bank will respond to changes as needed. That's been the mantra since the tightening period began last June.

The case for continued rate hikes has become, if anything, more compelling since Katrina.