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Pastimes : Tidbits

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To: Didi who started this subject9/10/2000 12:50:43 PM
From: Didi   of 1115
 
Econ--John M. Berry, The Post: "Basis Points"

washingtonpost.com

Edited for ease of reading.

>>> Basis Points

By John M. Berry

Sunday , September 10, 2000 ; H02

Analysts expect more evidence of slower growth and moderate inflation this week in the form of reports on retail sales and producer and consumer prices for last month.

Bond-market sentiment has shifted to the point that a growing number of analysts are talking about potential rate cuts by the Federal Reserve in coming months. Even more predict that policymakers will conclude at their Oct. 3 meeting that the risks associated with inflation and recession are balanced going forward.

At the moment, both propositions appear to be wishful thinking. As long as the nation's labor markets remain as tight as they are, most Fed officials are going to continue to worry out loud about the possibility that compensation increases and inflation will accelerate.

Tomorrow, Treasury will sell $9.5 billion in three-month bills and $8.5 billion in six-month bills, which yielded 6.18 percent and 6.28 percent in when-issued trading Friday.

© 2000 The Washington Post Company<<<
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