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To: Scumbria who wrote (103131)	5/4/2000 3:56:00 AM
From: Joe NYC	Read Replies (1) \| Respond to of 186894

Scumbria, With the recent huge jump in energy prices, an increase in the price of other goods is inevitable. What baffles me is why the Fed thinks they need to raise interest rates. How is that going to bring energy prices down? United States now has the highest inflation rate of all industrialized countries. For the last 12 months, the rate (consumer price increase) is 3.7%. The only other countries with inflation at or over 3% are Canada with 3% and Denmark with 3.2%. All the other countries are below 3%, some even below 2%. And at present time, all the other industrial countries are growing as well (except Japan). Joe

To: Scumbria who wrote (103131)	5/4/2000 7:11:00 AM
From: Road Walker	Read Replies (2) \| Respond to of 186894

Scumbria, re: "With the recent huge jump in energy prices, an increase in the price of other goods is inevitable. What baffles me is why the Fed thinks they need to raise interest rates. How is that going to bring energy prices down?" It's not just energy, other commodities and wages are also going up. Raising rates should curb demand, which should lower prices as there will be excess capacity. So goes the thinking. If Mr. Greenspan gets a little too aggresive, we may see a recession. It's been a long time, but I seem to remember that those are not pleasant. John