Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (12263)	3/6/2000 9:31:00 AM
From: Wally Mastroly	Read Replies (2) \| Respond to of 15132

Fed. "hawk-bias" may be increasing as voting-FOMC guys play musical chairs: bloomberg.com - P.S. -Heard a TV business analyst say that the Fed Futures Index (?) on the Chicago exchange is a good indicator of FOMC action. The reading (about 2 weeks) prior to the last 30 meetings has been correct 29 out of the last 30 times... Didn't catch any more specfics.

To: Justa Werkenstiff who wrote (12263)	3/6/2000 12:33:00 PM
From: Wally Mastroly	Read Replies (3) \| Respond to of 15132

Full speech + excerpts from the Greenman today: NEWTON, Mass., March 6 (Reuters) - Federal Reserve Chairman Alan Greenspan on Monday hammered home his message that the U.S. central bank had to raise interest rates to stop the economy from overheating. In a speech here to company executives, market regulators and academics, the world's most powerful central banker repeated his message of last month that productivity driven stock gains threatened to boost demand in the economy to a level where it could no longer be met by supply. ``Until market forces, assisted by a vigilant Federal Reserve, effect the necessary alignment of the growth of aggregate demand with the growth of potential aggregate supply, the full benefits of innovative productivity acceleration are at risk of being undermined by financial and economic instability,' he said in prepared remarks. Speaking to a conference at Boston College, Greenspan said the increases in productivity not only boosted corporate earnings but also company stock prices, which in turn bolstered the purchasing power of households who owned these assets. Looking at how long the economy could cope with the surge in demand, he said that the ``safety valves that have been supplying goods and services to meet the recent increments to purchasing power largely generated by capital gains cannot be expected to absorb indefinitely an excess of demand over supply'. While acknowledging that the rise in the pace of productivity growth had helped keep inflation at bay so far, Greenspan also warned that the tight U.S. labor market may have ``serious implications' for the economy by its potential to spark an upsurge in inflation. biz.yahoo.com - Full text of the speech: bog.frb.fed.us