Def, It certainly looks like we will have another push
down in the markets. I could believe an SPX move back
to the 200 dma at 1385, or the recent low of 1340.
We, have to see how much momentum we pick up here on the
downside.
I see the treasury is talking about a soft landing for
the economy, what else is he going to say -g-
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----"Information currently available suggests that the economy began the second quarter with considerable forward momentum," said John Auten, director of the Treasury's Office of Macroeconomic Analysis.
Mr. Auten made his comments to the Treasury's private sector Borrowing Advisory Committee, members of the Bond Market Association. The panel makes recommendations on a quarterly basis to the Treasury on debt-management issues.
The Federal Reserve has raised interest rates five times since June 1999 in a bid to cool the booming economy and forestall inflationary pressures. While the first quarter posted a growth rate of 5.4%, down from the fourth quarter's 7.3% annual pace, the heady growth still raises the prospect that the Fed may need to tighten credit more sharply or for a longer period ahead.
Mr. Auten suggested, however, that the economy may downshift to a more sustainable pace, given the experience of recent years.
"It may be worth recalling that in each of the last two years, strong first quarters were followed by second quarters in which real gross-domestic product slowed to about 2%," he said. "It is not beyond the realm of possibility that something like that could occur again this year. At the present time, though, the dominant feature of the current situation continues to be strong real growth combined with relatively low rates of inflation."
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