I'm now more afraid of what Mr. Greenspan says than what he does. I agree with your opinion on market reaction to rate hike - lets take our medicine and get on with it!
Coverage of NAFTA conference, EL Paso Times, Nov.6:
FED OFFICIAL ALLAYS FEARS OF INFLATION
Robert McTeer, president and CEO of the federal Reserve Band of Dallas, lauded the country's increase in productivity and said he doesn't see the sustained economic growth as inflationary.
McTeer attributed the productivity gains in part to NAFTA and advances in technology. The productivity increase, he said, was accompanied by a decrease in unemployment and an increase in work hours.
Overall, McTeer painted a rosy portrait of the country's economy. "We have the best performance we've seen since the '60s," he said. "Most people assumed that inflation would increase eventually, but it continued to decelerate."
However, McTeer said he is waiting for October inflation numbers to formulate his position on policy.
To avoid a labor shortage and to deep the U.S. economy growing, McTeer proposed to eliminate Social Security rules that penalize senior citizens for working.
McTeer also would like to liberalize immigration rules to allow skilled immigrants, especially those knowledgeable in new technologies, to work in the U.S.
"Trade and competition are the reasons why we have low inflation now."
Jerry |
