Econ--John M. Berry, The Post: "Basis Points"
washingtonpost.com
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Edited for emphasis and ease of reading.
>>>BASIS POINTS
By John M. Berry
Sunday , October 1, 2000 ; H03
The latest government figures on personal income and consumer spending showed last week that consumers continued to increase their purchases at a healthy pace in August. There appears to be little if any reason to fear that economic growth is about to slow excessively despite all the fuss over oil prices.
One interesting point in the report on income and spending was that consumer prices for goods were unchanged that month, also despite oil.
Meanwhile, just about everyone continues to expect Federal Reserve officials to make no change in their target for short-term interest rates when they meet in a policymaking session Tuesday.
For that matter, market participants have been betting that rates won't rise anytime soon, with some still thinking the next move could be an easing, though that looks very UNLIKELY for now. The Fed will probably state that officials still see the balance of risks on the inflation side.
Tomorrow, Treasury will sell $10.5 billion in three-month bills and $9.5 billion in six-month bills, which yielded 6.26 percent and 6.31 percent in when-issued trading Friday.
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