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To: garrick le who wrote (30690)10/20/1999 1:50:00 AM
From: 8-Ball  Read Replies (2) | Respond to of 99985
 
CPI & PPI Question...

Just wondering about the CPI & PPI numbers. When the FED raised rates the past two meetings I remember the buzz around most of SI was why!: "There is no inflation!! There is no need to raise rates !!!! CPI & PPI are tame !!!!"
Assuming the FED is really being pre-emptive in fighting inflation and knowing the effects of a rate hike take 3-6 months to be felt...wouldn't todays CPI and Fridays PPI be the reason rates were bumped up the past two FED meetings? What I'm getting at is why do the most recent CPI and PPI determine what the Fed is going to do in November? Shouldn't the FED be looking at what January's CPI & PPI are going to be when deciding the direction of interest rates?
Might be stupid questions...but they mean a heck of a lot to me <ggg>

Thanks...