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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%3:59 PM EST

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To: Chuzzlewit who wrote (65937)9/17/1998 1:48:00 PM
From: Lee  Read Replies (1) of 176387
 
Chuzz,..Re:There still doesn't seem to be any inflation on the horizon, so it makes sense to me to look at a lower interest rate.

Part of the reason that we have enjoyed such a low inflation rate is because of the dollar strength. If you look at graphs of CPI and DXY (dollar index), it becomes apparent that the higher the dollar got the lower the CPI. Now that the dollar is getting back to '97 levels, (it's 96.49 now) it won't be long before long rates will creep back up to balance this bias.

tfc-charts.w2d.com
Dec $ daily

tfc-charts.w2d.com
$ monthly

The weaker dollar may also help commodities as most are priced in US $. Demand will hopefully pick up which, although helpful to our farmers and neighbors Mexico and Canada, will nevertheless, pressure CPI upward. But from what AG has said, he's mostly concerned about the employment and wage situation rather than inflation. Plus, US consumers are still doing well, (68% of GDP). So AG and the Fed have a big puzzle to decide the greater risks to the US economy now - continuing decrease in assets and global instability versus stimulating an already strong and healthy domestic economy.

No easy job.

Lee
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