This section contains 434 words (approx. 2 pages at 300 words per page) |
The Path Towards More of the Same, March 6, 2006
Summary: February should display all the weakness that the bears are looking for, although the underlying trends really support a far more optimistic view of growth and a more risky view of inflation. That possibility gained adherents last week, as bond yields rose to the highest levels seen in several months, reflecting the concern those inflation concerns. Still, the process should be gradual, even if the risks are one-sided.
February should display all the weakness that the bears are looking for, although the underlying trends really support a far more optimistic view of growth and a more risky view of inflation. That possibility gained adherents last week, as bond yields rose to the highest levels seen in several months, reflecting the concern those inflation concerns. Still, the process should be gradual, even if the risks are one-sided.
Domestic considerations provide a fairly coherent prospect for rising inflation. While some people prefer to hope that economic growth will decelerate, retarded by a weaker housing sector, an inverted yield curve and assorted other arguments, the strength of the expansion remains evident as household and business spending remain on a solid trajectory, along with growth in wage rates and profits to finance that expansion. As long as the fundamentals behind this solid growth remain intact, minor shocks to the system...
This section contains 434 words (approx. 2 pages at 300 words per page) |