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To: goldsnow who wrote (39417)	8/22/1999 8:22:00 PM
From: Rarebird	Respond to of 116874

WALL ST WEEK AHEAD - All Eyes on the Fed NEW YORK, Aug 22 (Reuters) - Wall Street has been buzzing about another increase in short term interest rates and by Tuesday afternoon the world will know if all of the speculation has been on target. ''Everyone expects the Fed to raise interest rates one-quarter percent,'' said John Kornitzer, portfolio manager for several of the Buffalo Mutual Funds. He said that in addition to the argument that signs of a strong economy justify higher rates, the possibility of a Y2K (year 2000) panic near year-end means Federal Reserve Chairman Alan Greenspan wants to be in a position to lower rates later if conditions warrant. The Fed's policy-setting group, the Federal Open Market Committee (FOMC), meets Tuesday and around 2:15 p.m. EDT (1815 GMT), the results of the panel's deliberations should be known. A Reuters poll of Wall Street bond dealers showed that 29 out of 30 dealers expect a quarter-point increase. The Fed last raised interest rates June 30, notching the Fed funds rate up to 5.0 percent from 4.75 percent. Bond yields meanwhile have been fluctuating between just under 6.00 percent and 6.25 percent as investors try to adjust to the possibility or higher short term rates and deal with a shaky dollar which last week dipped below 111 yen. Although stocks often take their cues from interest rates, this week's Fed meeting may get more attention than usual because the other main driver for stocks, corporate earnings, are in a quiet period with second-quarter reports already out and the third-quarter weeks away.