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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: Wyätt Gwyön who wrote (2885)7/1/2003 10:28:19 AM
From: LLCF  Read Replies (1) of 4907
 
<Jim Grant always says the Fed can either fix the rate, or fix the money supply, but not both at the same time. >

Right... if you want the rate down 50bps you can't quibble about how much money you lend.

I think she means that in the long run the fed may be forced to simply backpeddle and raise rates if other market participants demand more and more and more. You could argue they [Volker] were forced to raise rates before too. Of course that would assume they see some evil [inflation?] that makes them decide sitting their pumping out more is not a good idea.

DAK
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