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To: vip who wrote (28365)	8/5/1999 10:20:00 AM
From: Boplicity	Read Replies (2) \| Respond to of 41369

VIP that means one of the legs of the expansion is being taken out, but this is summer so, who's to say. Greg

To: vip who wrote (28365)	8/5/1999 10:21:00 AM
From: Ken	Respond to of 41369

>> 01 PRODUCTIVITY SLOWDOWN COULD TROUBLE FED. >> 10:01 Q2 PRODUCTIVITY MISSES 2.2% EXPECTED BY STREET. >> 10:01 Q2 PRODUCTIVITY SLOWS TO 1.3% FROM 3.6% IN Q1. >> What does all this mean?? Higher interest rates??? It could. The Fed has not raised rates because higher wages have been offset by increased productivity. productivity is falling while wages are increasing = inflation = Fed takes action to slow the economy. My concern is that the Fed can do nothing to slow down wage increases specifically. They must slow down the entire economy which will eventually affect wages.