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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Defrocked who wrote (29438)	4/26/2000 5:45:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 42523

Is Hillary Ramping the Markets again. so do we see 50 basis points by the ECB? -------------- -- Federal Reserve Bank of Richmond President Alfred Broaddus said on Tuesday recent data had shown the U.S. economy faces the risk of higher inflation, boosted by mounting imbalances between supply and demand. "The latest data raised my level of concern" of the U.S. economy overheating, Broaddus told reporters after addressing a banking group. "The risks are weighted to the upside." In his speech to Robert Morris Associates, Broaddus said the economy was facing a "fairly significant" imbalance between demand and supply. He pointed to the large trade deficit as one of the U.S. economy's key imbalances. His remarks appeared to mirror recent warnings by Fed Chairman Alan Greenspan about the risks of rising inflation caused by red-hot demand that exceeds the economy's supply potential. The Fed is widely expected to continue raising short-term interest rates moderately in the months ahead to cool off the economy, as five such moves since June of last year have shown little effect yet. Looking ahead, Broaddus said key U.S. data to be released later this week would provide important clues about the dangers of higher inflation in the world's biggest economy. The Commerce Department will release its first estimate of output growth during the January-March period on Thursday. Broaddus said forecasts for that number were running as high as 6.5 percent, following a scorching 7.3 percent growth rate in the fourth quarter of last year. "If you get a number that strong, it would certainly not be comforting," he said. Broaddus signaled the first-quarter Employment Cost Index, also due for release on Thursday, would be closely vetted by the Fed for any signs of rising wage pressures.