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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (2180)5/5/2001 12:17:46 AM
From: ahhahaRead Replies (1) of 24758
 
Market players should take note of some visual evidence for my previous remarks. Referring to the below link:

stls.frb.org

one should note that the 10-year Treasury has cut up through the fed funds rate. More and more money causes rates to rise due to rational expectations for inflation. The market is saying FED has made yet another mistake by lowering the fed funds target below 5%. They should have waited. There is only possible expectation now concerning further decreases. There is no chance that FED will lower the fed funds target any time soon, where soon is something like six months. There is a good chance that by August they will have to raise fed funds back to 5%. In order to keep the fed funds rate below 5% instantaneously, the quantity of money created will have to accelerate. Money goes more into final prices via wage increases than it goes into real output.
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