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To: pater tenebrarum who wrote (24140)	10/3/2000 4:56:21 PM
From: Ken98	Read Replies (3) \| Respond to of 436258

<<Treasury's Summers repeats support for Fed independence TUESDAY, OCTOBER 3, 2000 3:17:00 PM EST WASHINGTON, Oct 3 (Reuters) - The Clinton administration on Tuesday repeated its backing for the independence of the Federal Reserve, shortly after U.S. central bank policymakers decided against raising interest rates. "We share the Federal reserve's goals of maintaining healthy economic growth while preserving low inflation," Treasury Secretary Lawrence Summers and Council of Economic Advisers Chairman Martin Baily said in a joint statement. The Fed said it was keeping the key federal funds overnight bank lending rate at 6.5 percent, the level it has been at since May, but once again warned of looming inflation dangers that effectively kept the door open for increases in borrowing costs in the months ahead. The meeting of the Federal Open Market Committee was the sixth of eight to be held this year, and the final one before the Nov. 7 presidential election. The next scheduled meeting is on Nov. 15. Analysts said before the Fed meeting that the proximity of the election was an added incentive for the Fed not to raise rates and to stay above the political fray, though a far less important one than the fact that economic growth already was slowing and there was scant sign of inflation. The statement from Summers and Baily said sound economic policies were keeping the economy growing and fostering strong investment and high productivity. "We are committed to sustaining this economic success into the future," they said.>> Heinz, I didn't realize anyone WAS questioning the Fed's independence? That sounds like a veiled threat to me. Any thoughts?