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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (2481)	6/28/2000 2:15:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

how the Fed words things will tell the tale...... 12:43 ET 30-year: -21/32..5.978%....GNMAs: -6/32....$-¾: 105.61 In preparation for the 14:15 ET FOMC announcement here's how the Fed described the economy just six weeks ago: "Increases in demand have remained in excess of even the rapid pace of productivity-driven gains in potential supply, exerting continued pressure on resources. The Committee is concerned that the disparity in the growth of demand and potential supply will continue, which could foster inflationary imbalances that would undermine the economy's outstanding performance." That paragraph preceded the assessment expected again today that "the risks are weighted mainly toward conditions that may generate heightened inflation pressures...". How the FOMC phrases the earlier paragraph will be telling as to how the policy-makers see (or want the market to view) current economic conditions. We expect it will repeat warnings of an imbalanced economy and inflation implications providing the likelihood for more tightening down the road. As today's durable goods report showed, it takes more than a month of data to correctly signal a slowdown.