“Today's data are consistent with a still-strong trend in growth, a healthy labor market, and potential inflationary pressures, ... enough to keep the Fed on its steady diet of 25 basis-point rate hikes.”
“The deterioration we did see was in energy prices; if you take out energy prices, things improved a bit. The bad news is that September import price data guarantees that we'll have a widening deficit in September.”
“A weaker yen will put substantial downward pressure on inflation and will result in lower interest rates. A stronger dollar also means that U.S. assets are more attractive, once you buy them.”
“We thought we were living in a wonderful world. Our old adversaries were either tamed, in the case of Russia, or, in the case of China, becoming prosperous. ..Our view of the world as a benign place where capitalism was making almost everyone happy is not true.”
