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To: IceShark who wrote (10223)	2/16/2000 2:06:00 PM
From: clochard	Respond to of 42523

Wednesday February 16, 1:48 pm Eastern Time Inflation to rise unless rates raised-Fed's Poole JONESBORO, Ark., Feb 16 (Reuters) - Federal Reserve Bank of St. Louis President William Poole said on Wednesday that if interest rates did not rise in a ''timely fashion'' then the rate of inflation would eventually accelerate. In prepared remarks before the Arkansas State University, Poole, a non-voting member of the rate-setting Federal Open Market Committee, said the central bank's main goal was to keep inflation ''low and stable''. ''If interest rates don't rise in a timely fashion, then sooner of later inflation will begin to rise,'' he said in his speech entitled ''The Impact of Monetary Policy on Agriculture''. ''When that happens, investors will put additional upward pressure on interest rates, to protect their capital from being eroded by inflation. So, a central bank that delays raising rates does not in the end avoid rate increases, but instead imposes both higher inflation, even higher interest rates on society,'' he added. While acknowledging that the farm economy had experienced hard times recently, Poole said there was a danger that the Fed would lose the fight against inflation if it began to pursue other objectives. ''Compromising monetary policy will not in the end help agriculture but will actually make things worse by generating instability in the inflation rate, interest rates and the level of economic activity,'' he said.