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To: Mary Cluney who wrote (121413)	12/8/2000 4:04:36 PM
From: GVTucker	Respond to of 186894

Ah. OK, now I understand. IMO, a primary reason for the Fed rate increases earlier this year were to contain the inflation that would have been caused by the liquidity thrown into the system pre Y2K. As it is, the core rate and the all in rate have been higher this year than it has been in 6 years, the last time that the Fed raised rates. My point about the Fed being irrelevant boils down to this--if the Fed hadn't raised rates earlier this year, the dollar would have gotten absolutely pounded, and we would've seen higher inflation rather than a slowdown. The net result to the markets would have been the same or worse.