Fed hawkish on increase of consumer sentiment numbers as gasoline price decline
Peter Oberois
Oct. 25, 2006

The Fed is hawkish on the consumer sentiment numbers. An index of consumer sentiment, due from the University of Michigan on Oct. 27, is expected to rise to 94 this month, the highest since July 2005, from 85.4 in September. A preliminary reading released earlier this month showed a reading of 92.3. Some analysts expect it will get further adjusted upwards to 94. The hawkish members of the Fed are very concerned on the same.

The consumer sentiment number rose so sharply and is going up so well at this time that the Fed hawks are concerned about the inflation pressures. While real estate is a damper, immediate excess cash in the pocket is fuelling consumer buying at this time.

Fed hawkish on increase of consumer sentiment numbers as gasoline price decline
Peter Oberois
The Fed is hawkish on the consumer sentiment numbers. An index of consumer sentiment, due from the University of Michigan on Oct. 27, is expected to rise to 94 this month, the highest since July 2005, from 85.4 in September.
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An inside look at Fed statement - pause in rate hikes, hawkish on inflation watch and soft landing expectation on real estate
Sam Adelton
The most important part of their decision making comes from their assessment of the manufacturing and service side of the economy.
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Germany's business climate index rose from 104.9 in September to 105.3 in October, a 15-year high and up from the forecast 104.5
Media Release
The rise coincides with an increase in French business confidence from 106 in September to 108 in October.
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A German navy vessel and two Israeli F-16s clashed near Lebanese coast
Media Release
The jets then used infra-red countermeasures to ward off any rocket attack. A German ministry spokesman told Reuters there was an incident. An Israeli military spokeswoman said she is checking the report.
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South Korea's third-quarter economic expansion of 0.9% manifests weakness in Asian and American economies
Peter Oberois
Asia’s third largest economy grew at 0.9% in the third quarter, 60% of the growth is attributable to increased business investment and construction. The consumer spending and export was a drag.
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Durable Goods Orders will manifest strength of US economy – effects on bonds, stocks, gold and currency
Peter Oberois
If history is any indicator, rising durable goods order with increasing leading indicator and confirming stock market forecast a robust economy with inflation pressure in the next six to nine months.
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New home sales will show little change – economy is ready to accelerate for next six months – stock market confirming
Sam Adelton
The gloom and doom in residential real estate will come to an end temporarily. The market sentiment is so bearish that a snap back rally is required for any longer term bear market in real estate.
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Stagflation in US economy will force Fed to raise rates in spite of decline in economic growth in 2007
Joesph Weinman
The economic growth will be in the range of 2.5 to 3.5% in 2007. The price deflator will show higher pipeline inflation. Fed starting March will raise rates again.
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