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To: Dealer who wrote (23978)6/28/2000 6:39:00 PM
From: Jim Willie CB  Respond to of 35685
 
I am constantly amazed at the Federal Reserve's ineptitude
they still see an inflationary threat
a simple study of the last several recessions will show a blip in inflation for the last few months before a true serious slowdown occurs
the real big mistake is to react to such minor inflationary blips by raising rates again

we have yet to feel the effects of rate hikes from March-April-May, a full 100 basispts

analysts are already talking about perhaps a rate decrease later this year
how about a revolutionary concept: let the credit market dictate rates???
that would eliminate much of the extreme cyclical nature that has resulted from human controlled monetary policy making
committee controlled economies are part & parcel of communist nations
Federal Reserve policy actions are totally inconsistent with capitalism principles

dont fight the Fed
/ Jim