31. For Chan and other analysts, however, the benign inflation outlook now masks the potential for employment costs to eventually rise at a faster rate. 32. Financial-services companies typically have substantial investments in fixed-income securities, and tend to rally when the inflation outlook is subdued. 33. For now, though, the inflation outlook looks good. 34. For now, the inflation outlook is positive. 35. Housing got a shot in the arm earlier this year as mortgage rates fell in response to a tame inflation outlook. 36. However, Phillips said the Fed remains on guard, and current plant-use rates may threaten the inflation outlook in coming months. 37. However, the Fed remains on guard, and current plant-use rates may threaten the inflation outlook in the coming months. 38. In addition, another Fed governor, Lawrence Lindsey, gave a more upbeat assessment of the inflation outlook today. 39. In August, the inflation outlook was more serene. 40. In several other countries, bonds actually beat stocks, benefitting from a favorable inflation outlook and low interest rates. |