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: Mr. BSL who wrote (13555)	4/28/2000 8:51:00 PM
From: Jeffrey D	Respond to of 15132

Mr. Summers on the economy. Jeff << DJ Summers: Econ Is Sound,Must Be Vigilant On Inflation -CNN 04/28/2000 Dow Jones News Services (Copyright ¸ 2000 Dow Jones & Company, Inc.) NEW YORK (Dow Jones)--Despite economic indicators released Friday that left some analysts worried about inflation, U.S. Treasury Secretary Lawrence Summers said fundamentals for the economy "continue to be sound." Summers, speaking in a recorded interview on the Cable News Network Friday, said, "With a very high rate of investment, we've seen capacity increase rapidly, we've seen very substantial increases in productivity, growth. I think that our economy is in a good situation." The Commerce Department said Friday that personal consumption expenditures rose a smaller-than-expected 0.5% in March, following an upwardly revised 1.4% gain in February. Income growth, meanwhile, outpaced spending for the first time since October, rising a larger-than-expected 0.7% during the month after a 0.4% February increase. That prompted a slight uptick in the personal savings rate - the amount of disposable income left over after spending. Commerce said the rate rose to 0.4% in March from February's record-low 0.2% rate. The data show an increase in inflationary pressure, analysts say, and make it more likely that the Federal Reserve will increase the federal funds rate by 50 basis points to 6.5% when it meets May 16. "Of course there'll always be fluctuations from quarter to quarter," Summers said of the data. "Of course we always have to be vigilant with respect to inflation, but the fundamentals of this economy are sound." Summers was briefed earlier Friday on the Justice Department's proposed remedy in the Microsoft anti-trust case. He said it was important for him to be informed about the case because of its likely effect on the economy. "The technology sector and the information technology and software sectors of our economy are very important sectors that in many ways have been drivers of economic growth. That makes developments in those sectors very important for the overall economy," Summers said. Summers declined to comment on the Justice Department's proposal. >>