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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey D who wrote (9572)	7/20/2000 11:30:44 AM
From: Kirk ©	Respond to of 42834

Fed chief sees signs of slowdown cbs.marketwatch.com Great news! The Fed expects the economy to grow 4 to 4.5 percent in 2000, "suggesting a noticeable deceleration over the second half of 2000," he said. Gross domestic product is expected to grow 3.25 to 3.5 percent in 2001, "given the firmer financial conditions that have developed over the past 18 months," he said, indicating that the Fed's six rate hikes should be enough or nearly enough to slow the economy to its trend. The jobless rate is expected to remain around 4 percent for the rest of this year and next, while inflation as measured by prices of personal consumption expenditures will rise to 2.5 to 2.75 percent this year before easing back to a 2 to 2.5 percent level next year, he said. Whatever the causes, "it is clear that, for the time being at least, the increase in spending on consumer goods and houses has come down several notches, albeit from very high levels," the chairman said. None of the factors that have kept inflation low are likely to dissipate, he said, as long as the federal government doesn't fritter away the surplus and the Fed "remains vigilant." Not bad news for those invested at 100%.