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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: marc ultra who wrote (5304)5/26/1999 2:35:00 PM
From: marc ultra  Read Replies (1) of 15132
 
My Fed comment, worth the price of electrons being used
I think the Fed is likely to make a .25% hike in June unless compelling evidence in the May numbers or emerging markets dissuade them. I think they may look at last year's rate cuts especially the last one as an extreme action they had to take due to fear of a global meltdown. While there is currently concern e.g. in Latin America they will no longer see the probability of touching off a disaster and they will focus on the US economy which they will feel they have exacerbated the fires of the strong economy along with the market with last year's rate cuts and liquidity and they will probably be ready to take one rate cut back along with whatever else they have been doing to clamp down on the money supply. It will be hard for those arguing the high growth no inflation line to prevail given the last CPI so obviously the upcoming CPI PPI and jobs report will be important.

Marc
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