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To: Sam Sara who wrote (65288)	6/29/1999 9:17:00 AM
From: Bill Harmond	Respond to of 164684

>> What the heck is a "symmetric bias"? A bias without bias! No inclination to either tighten or loosen credit.

To: Sam Sara who wrote (65288)	6/29/1999 6:08:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

David <If I'm not mistaken, the Fed's job is to fight inflation> Actually, I think the Fed is responsible for supplying an amount of money -- through the control of credit availability -- consistent with maximum growth with price stability. The rate rise is just a way of saying that the credit tap is open a bit too wide at the moment. The 'bias' is the big deal -- not the tightening -- cause the bias drives the trend, and it is the trend we have to fear. Are interest rates where they are going to slow down the economy enough to maintain price stability in a period of global economic expansion? That is the issue. Today's inflation is meaningless in answering this question.