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To: 10K a day who wrote (29858)	8/22/1999 4:03:00 PM
From: Vendit™	Read Replies (4) \| Respond to of 41369

impristine Did you see this? The fed rate hike might not be a done deal after all. Fed Doesn't Need to Hike -- And Might Not Let's be very clear about the Fed's upcoming monetary policy decision on Tuesday, August 24: The only intellectual justification for a tightening move is to limit the growth of employment, wages and the economy. And, in my judgment, this is bad thinking. Very bad thinking. The greatest nation on the planet should not be conducting monetary policy to punish successful wage earners or wealth creators. This Malthusian pessimism is unseemly and undignified. The alleged Phillips curve trade-off between unemployment and inflation is a theoretical model in search of corroborative evidence. But there ain't none. The notion that too many people working, producing and prospering is a bad thing is, itself, a very bad thing. In recent days I have watched a parade of economists on CNBC who report that there is no evidence of rising inflation. Yet they still assert that the Fed will raise the overnight funds rate to 5.25 percent from 5 percent "because the economy is too strong," or "wages are rising too fast." Shame on the economics profession. Perfectly intelligent people pursuing the wrong model. Or, they are merely parroting the Fed line. cnbc.com Any guesses how no rate hike would affect the general markets this coming week?? Vendit