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Technology Stocks : How high will Microsoft fly?
MSFT 487.71-0.1%Dec 26 9:30 AM EST

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To: John F. Dowd who wrote (36060)1/6/2000 2:54:00 PM
From: Charles T. Russell  Read Replies (1) of 74651
 
John,

Have you heard of the money market? How is that regulated? Wouldn't an adjustment to fed funds, the disount rate (to a lesser extent) and repo transactions affect that 'market'. Doesn't the fed set these policies?

It is the feds job to manage the money supply and thus manage inflation. So, they must also manage the wealth effect caused by a rising (understated heavily) stock market.

The fed is empowered to affect markets. AG and the FED have had a great deal to do with the length of this economic expansion. I think he and his crew have demonstrated that they do understand what is going on in the economy and have taken great care not to interfere to heavily.
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