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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (20522)	8/24/1999 2:34:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 43080

FOMC raises Fed funds and discount rate by 25 basis points. Adopts neutral bias. 14:22 ET Fed Announcement : if you focus on the rate hikes or the policy directive, you are probably missing the most important part of today's decision -- the wording of the announcement. The Fed said that "Today's increase in the federal funds rate, together with the policy action in June and the firming of conditions more generally in U.S. financial markets over recent months, should markedly diminish the risk of rising inflation going forward." The reference to markedly diminishing the risk of inflation suggests that the Fed is less likely to tighten again in October. This is not a guarantee that there won't be more rate hikes, but it will take more clear evidence of inflation to prompt another tightening. That's good news for stocks. Rock and Roll, Brothers and Sisters!