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Strategies & Market Trends : News Links and Chart Links
SPXL 213.39-5.0%Nov 13 4:00 PM EST

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To: Les H who wrote (2671)9/2/2002 10:54:43 AM
From: John Madarasz  Read Replies (1) of 29596
 
Rate cuts said inflating real estate bubble

By: Jacqueline Thorpe

damonvickers.com

Goldman says a further 15% to 20% fall in the dollar would not only ease U.S. financial conditions but also put pressure on other countries to ease policies.

And while a falling dollar may push up inflation in the United States as imported goods become more expensive, that would be a good thing for a country dancing on the edge of deflation. The Fed estimates a 10% drop in the dollar would raise consumer prices by about 0.4%. Goldman adds it would also keep the core personal consumption expenditure deflator, closely watched by the Fed, in a 1% to 2% range. It is currently at 1.6% and there is a danger of it falling toward 1% this year.
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