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To: freeus who wrote (19148)5/17/2000 6:40:00 PM
From: Jim Willie CB  Read Replies (1) | Respond to of 35685
 
the economic cycle is strange... in a late stage, the higher borrowing costs result in an inflationary final burst, which immediate precedes a recessionary pullback

believe me, the recessionary pullback does wonders in fighting inflation
but the Fed is not fighting inflation really
it is fighting the gradual shrinking of the labor pool
a recession would allow the labor supply to catch up

I think Greenstein wants a reprieve, not a recession
I think he will back off very very soon

VP Gore is now badgering and jawboning him
the Fed is technically independent, but not totally
I truly believe the Fed raised 50 bpts partly to get this tightening cycle over with
they are 25 bpt from done IMO
/ Jim