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To: Ken98 who wrote (42266)11/30/2000 7:31:29 AM
From: Oblomov  Respond to of 436258
 
<What's your take on the most recent Fed Speak?

The hawkishness of it caught me by surprise. William Poole has always been an inflation hawk, but Robert Parry has been more dovish, though not so much as McTeer.

Still, through open market operations the Fed continues to add liquidity to the system at a blistering pace.

I can only think of two possibilities as to why the Fed Governors would warn of inflation: 1) the inverted yield curve is posing problems for some leveraged players, and they are trying to jawbone the curve back to an upward slope, and/or 2) they are trying to weaken the dollar.

What do you think it means?