To: Bucky Katt who wrote (5963 ) 4/4/2000 1:01:00 PM From: James Strauss Read Replies (2) | Respond to of 13094
Fed Hikes Beginning To Sting... ********************************* Tuesday April 4, 12:48 pm Eastern Time U.S. leading indicators fall in February WASHINGTON, April 4 (Reuters) - A key gauge that forecasts the U.S. economy fell for the first time in five months in February, a private research group said on Tuesday, raising the possibility of a slowdown in the red-hot U.S. growth rate in the months ahead. The Conference Board said its Index of Leading Economic Indicators fell 0.3 percent in February after rising 0.2 percent in January. The February decline was the largest since a matching 0.3 percent drop in January 1996 and was larger than the 0.2 percent fall expected by Wall Street economists surveyed by Reuters. The index is intended to signal trends in economic growth and forecast possible growth or recession. ``The data now suggest some sectors are beginning to respond to Fed tightening, but certainly not enough to prevent the economy from reaching new records for longevity,' Goldstein said. The Federal Reserve has tightened interest rates five times since June in an effort to prevent inflation from rising in the U.S. economy, which is enjoying its longest expansion ever.``The biggest risk to the ongoing expansion continues to be interest-rate increases and the prospect of still more Federal Reserve Board action,' Ken Goldstein, Conference Board economist, said in a statement. Eight of the 10 factors that make up the leading index fell in February, led by capital goods orders, building permits and the Treasury yield curve. Average workweek and manufacturers' orders for consumer goods rose in February, the report said. ***************** We are being presented with a tremendous buying oppty as stocks tumble today... The FED may have to re-think its tightening posture... Jim