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To: microhoogle! who wrote (108105)9/8/2000 3:17:50 PM
From: GST  Respond to of 164684
 
"Can't this increase in price of oil be offset by decreasing interest rates half a dozen times?" Yes, but it won't be -- it is purely theoretical to think the Fed can move that fast. And they will not want to move too much for two reasons: 1. Uncertainty about how long oil will stay high: 2. The strength of the economy is a reason for high oil prices and lower rates would pressure commodity markets higher.


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