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To: Patrice Gigahurtz who wrote (53687)6/11/2000 6:22:00 PM
From: umbro  Respond to of 99985
 
This article, at Dismal.com discusses the prospects of a soft-landing and says it's 50/50 for a rate hike:

dismal.com

By Dan Green 6/09/00 11:59 AM ET

Will we have a soft landing?

Numerous data releases in the past two weeks have pointed
towards a slowdown in growth, but analysts disagree as to
whether the economy is stabilizing. The goal of recent Fed
rate hikes has been to ease the soaring economy into a soft
landing. A soft landing means that the economy slows to its
non-inflationary potential growth rate, likely close to
3.5%. This contrasts with a hard landing, which would be a
recession.

A soft landing would be ideal, but has proven elusive in the
past. This time around analysts are hopeful because
consumers seem to be reining in their spending and
production appears to be keeping pace. At the same time,
inflation has remained under control.

Tuesday's May retail sales report should mark the second
month in a row of weakening consumer demand. This relaxation
in demand is especially welcome because consumer spending
drives much of the economy and because recent consumer
credit reports have raised fears that some consumers are
getting in over their heads in debt.
[...]



To: Patrice Gigahurtz who wrote (53687)6/13/2000 6:38:00 PM
From: James Berg  Respond to of 99985
 
What are the odds that the coming week yields a drop in retail sales but a firming in CPI ?

It looks like your scenario has a good chance of coming to pass... I expect the CPI to be somewhere around .5% this time.

Mr. Greenjeans' speech about increasing productivity and moderating inflation was a bit of a surprise, though. I've got some NDX 3600 puts which went from being at the money to well out of the money before I even knew about it.

--James