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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (6157)	6/22/1999 10:30:00 AM
From: Wally Mastroly	Respond to of 15132

Fed Watch - New York Fed guy: quote.bloomberg.com ...On how closely the Federal Reserve watches inflation in deciding whether to change interest rates: ''If we see inflation as a real possibility we have to do something about it,'' McDonough said. ''Our view is that if you wait for inflation to look you in the eye, you've waited too long. He also noted that in 1994 the Fed raised rates before accelerating inflation showed up in economic indicators. In addition, he said the Fed is as much on guard against falling prices as higher inflation. For instance, he said, falling prices in Japan and China are may be signs of trouble in those economies. ''Once you have prices declining in general, usually that is accompanied by severe economic weakness and it's very hard to stop the process,'' McDonough said. The U.S. expansion, now in its ninth year, ''is likely to be a fair bit -- if not a good bit-- longer,'' McDonough said. ''The modern world has as one of its leading wonders the economy of the United States of America.''