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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (18689)	9/15/2000 10:51:11 AM
From: Ken98	Read Replies (2) \| Respond to of 436258

More Clownspeak: <<ST. LOUIS, Sept 14 (Reuters) - Soaring energy costs are not tainting the "very sound" broad U.S. inflation picture yet, Federal Reserve Bank of St. Louis President William Poole said in an interview on Thursday. "What continues to be both surprising to me and also very gratifying is that there is so little pass-through into the non-oil prices," he told Reuters. "That says that underlying inflation...is still pretty sound, very sound, and that expectations of future inflation are very well-contained." Poole also said it seemed the Fed's efforts to slow the speeding U.S. economy to a more sustainable, noninflationary pace are working. "It appears to me that the economy's sort of breakneck pace...has slowed," he said, citing a report released on Thursday that showed retail sales rose a lower-than-expected 0.2 percent last month, following a jump of 0.9 percent in July. [...] More support for that view accumulated on Thursday when the government said wholesale prices fell for the second straight month in August. The Labour Department said its producer price index, which measures the prices paid to the nation's factories, farms and other producers, fell 0.2 percent in August after remaining unchanged in July. [...] Poole estimated that the sustainable growth pace of the U.S. economy was between 4 percent and 4.5 percent but could eventually climb higher due to private-sector innovations that push up worker productivity. "I think it's still a young economy, it's an economy that has tremendous opportunity to develop new products and new ways of doing things," he said. [...] Poole said it was possible that higher energy costs could be passed along to consumers in the future if prices stay high for an extended period. However, he noted that according to futures markets, prices have likely reached their peak. "Our focus should be on maintaining the low inflation and then that outcome gives us the best chance of maintaining and maybe even improving on the current labour market's performance and growth performance," Poole said.>>