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Strategies & Market Trends : Waiting for the big Kahuna

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To: Vitas who wrote (28650)9/23/1998 3:23:00 PM
From: Monty Lenard  Read Replies (2) of 94695
 
Vitas, will he lower rates? If he does, this crazy market may go back to new highs. Is he willing to chance more I.E.?

> "When I testified on monetary policy in July, I explained that the
> Federal Open Market Committee was concerned that high--indeed
> rising--demand for labor could produce cost pressures on our economy
> that would disrupt the ongoing expansion. I also noted that a high
> real federal funds rate was a necessary offset to expansionary
> conditions elsewhere in financial markets. By mid-August the Committee
> believed that disruptions abroad and more cautious behavior by
> investors at home meant that the risks to the expansion had become
> evenly balanced. Since then, deteriorating foreign economies and their
> spillover to domestic markets have increased the possibility that the
> slowdown in the growth of the American economy will be more than
> sufficient to hold inflation in check."

Beats my Queens!

Monty
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