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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: pater tenebrarum who wrote (18343)6/23/1999 8:26:00 PM
From: Michael Watkins  Read Replies (1) | Respond to of 99985
 
Heinz: single most important factor for considering a rate hike, as it is the root cause of the overheating economy.

I believe the single most important factor is that the Fed would prefer to be proactive rather than reactive. Therefore the economists that portray the current economic environment as having strong growth with little sign of inflation are merely lending the FOMC all the ammunition they need to be proactive.

i.e., a rate increase, even more than one, will not "hurt" if done proactively and judiciously.

I like the Flu shot analogy being paraded about lately.

(looking for .50, based on the last cut was probably not required, and more and more signs of a bottom having already been set in SEA and some important commodity markets)