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Strategies & Market Trends : Waiting for the big Kahuna

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To: Haim R. Branisteanu who wrote (39097)	3/30/1999 12:09:00 PM
From: Kailash	Read Replies (1) of 94695

Haim - what about the short-term T-bills, currently standing at 4,37%? "Federal Reserve policy will be tested once three month Treasury Bill rates exceed the Fed Funds rate. At that point the Federal Reserve would have to inundate the banking system with reserves to maintain the lower inter-bank rate, a highly inflationary operation." gold-eagle.com Doesn't it seem logical such a rise would force the Fed's hand? Kailash

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