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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (34130)	10/4/2000 12:50:23 PM
From: James Strauss	Respond to of 50167

Looks like the NAZ went south right after the FOMC announcement (at 2:15 PM)? Maybe the NAZ Casino guys were expecting the FED to remove the bias... Greenspan is still in the data-gathering mode...(IMHO) Wally: Until we see evidence of a reduction in oil prices the FED will most likely voice its vigilant posture against inflation... The airlines and trucking companies are taking a pounding... The Dow Transportation Average shows this... So, the FED will have to continue doing a balancing act between engineering a soft landing but also be cognizant of the shrinking value of equities... Shrinking equity prices put a damper on capital growth, and have a negative impact on consumer spending as the Wealth Effect withers... With improved structural productivity the FED is likely to cut rates at the first sign of sustained oil price reductions... Jim