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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: profile_14 who wrote (87261)	11/30/2000 2:33:32 PM
From: Night Writer	Read Replies (2) \| Respond to of 97611

Fed's Poole backs Fed action if mkt slide hits economy FRANKFURT, Nov 30 (Reuters) - William Poole, President of the Federal Reserve Bank of St. Louis, said on Thursday he would be in favour of the Federal Reserve taking action if a stock market slide threatened to hurt the real economy. Poole told reporters on the sidelines of a conference in Frankfurt that the Federal Reserve had acted in 1998 in response to market volatility and that he would be in favour of the Fed taking action in future if circumstances required it. The Federal Reserve cut interest rates in 1998 after stock markets fell in the wake of an emerging markets crisis in Asia and Russia. "I would want to respond if it looked like financial market events are feeding in to affect the real economy in an adverse way," he said, stressing that he was voicing his personal opinion and could not speak for the Federal Reserve. Poole will be a voting member of the U.S. Fed's rate-setting Federal Open Market Committee next year. Poole also said that experience showed that energy price increases tended to have a temporary effect on headline inflation. Asked whether the current slide in U.S. equity markets and especially in the tech-rich Nasdaq, was threatening to force the U.S. economy into a hard landing, Poole said it was the job of a central bank to prevent market volatility from spilling over into the real economy. ((Frankfurt Newsroom, +49 69 756525, frankfurt.newsroom@reuters.com)) REUTERS * end of story *