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To: kendall harmon who wrote (62650)	9/22/1999 10:37:00 PM
From: kha vu	Read Replies (1) \| Respond to of 120523

<<<IMF Wants Another Fed Rate Hike, but Is Anyone Listening? By David A. Gaffen Staff Reporter 9/22/99 8:00 PM ET One of the last things the Fed needs is another talking head telling it what do to. But at least this talking head isn't undermining the Fed. Michael Mussa, economic counsel for the International Monetary Fund, said Wednesay his personal preference was for the Fed to raise the fed funds target one more time before the end of the year. Doing so would address the Fed's worry over a widening current account deficit, and perhaps take a little air out of the stock market, he said at the presentation of the IMF's World Economic Outlook. It would appear that Mussa is advocating a more proactive, forward-looking response to monetary policy than most economists think the Fed will take for the rest of the year. But in reality, what Mussa said this morning is consistent with previous IMF statements and only a mildly different approach to topics that the Fed's been talking about for several months. "In the Fed's own minds, they'd say the next direction of rates should be up rather than down," says Josh Feinman, chief economist at Deutsche Asset Management. "They're aware of the risks the IMF is talking about. The current account deficit is telling us that the U.S. economy is potentially overheating. [But] part of reason it is so wide is because there is weakness in our major trading partners." The current account deficit measures the difference between the dollar value of goods, services and payments the U.S. is importing and what's leaving the country. Due to incredible consumer demand and the attractiveness of our financial assets, the current account deficit rose to a record $80.7 billion for the second quarter.>>> thestreet.com