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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: hroark2000 who wrote (16159)11/14/2000 4:51:05 PM
From: Jim Willie CB  Read Replies (2) of 65232
 
Fed policy moves will be strange to be sure
just saying sooner or later they will ease
likelihood of rate cut is now greater than rate hike

PPI core was negative
crude oil helped to slow down the economy, thus helping AG
spending is down
durable goods is hardly strong
inventory has built up

the Bush taxcut angle would seem to discourage AG
but dont expect that to happen without a huge fight in Congress
everyone has been saying that split Congress will NOT allow progress

I frequently mention how the Federal Reserve responds more than ANY other factor to the corporate bond spread (over Treasury yield)... that factor indicates bigtime strain right now, meaning illiquidity in the credit market

the Fed sees panic on Wall Street
dont be surprised in the next couple months to cut rates
they could put spin on it by saying something like...

"we are just taking back the June 25bpt hike that might have been excessive"

/ Jim
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