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Pastimes : All Clowns Must Be Destroyed
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To: pater tenebrarum who wrote (37875)6/5/2000 1:27:00 PM
From: KyrosL  Read Replies (2) of 42523
 
Heinz, I wouldn't dismiss the soft landing possibility. Interest rates are about neutral, in real terms. IMO, the economy started slowing not because of interest rates but because of the effect of the sharp rise of oil last year and the federal budget surplus, which together removed an extra $300 billion of spending from the economy.

If this slowdown prevents the Fed from further raising rates, it's possible that a soft landing will result, like in '94.
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