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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (62679)	6/17/1999 9:41:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 132070

No, as Alan Greenspan made clear today in testimony for Congress, the slowdown is a deliberate correction to the expansion of last fall. The Federal Reserve does not control the stock market (except by controlling margins, which it has not changed for decades). It only partially controls interest rates. But it has the power to expand or contract the money supply--either short term or long term--whenever it sees fit. In practice, it does this very gradually, except when it perceives a crisis as it (wrongly in my view) did last October.