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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Henry Volquardsen who wrote (1786)6/16/1999 11:52:00 AM
From: TAPDOG  Read Replies (2) of 3536
 
Henry: I think there is little doubt that the Fed will raise 1/4 point. More than a point and they would be under criticism that they are raising with no evidence of inflation. If they don't raise 1/4 point then the stock market and real estate market will soar and the wealth effect will becomes greater and I think Greenspan wants to avoid an even bigger bubble.
However, I don't think Greenspan would ever publicly admit that he's trying to keep the stock market from going too high. That would be un-American. He will cite the labor market as well as other data to show the threat of inflation in the future.
Personally, I was a little surprised by the friendly CPI and I immediately covered my shorts. Everything I look at, including anecdotal evidence, points to an economy that's humming along pretty fast.
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