Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jeff Jordan who wrote (35983)	12/20/2000 11:37:46 AM
From: James Strauss	Read Replies (4) \| Respond to of 50167

Jeff: Apparently the market is beginning to think that the FED is falling behind the economic curve... Add to that the Paul O'Neill Treasury Sec appointment, and you have a market that didn't get a Wall Street insider at the helm of Treasury... Add to that Bush's insistence on the full 1.6 trillion dollar tax cut, and you have ammunition for the FED not to cut rates immediately if they foresee a big inflationary tax cut looming on the horizon... Add to that a recession that will eat into to the forecasted budget surplus that isn't here yet that's supposed to fund an inflationary tax cut... This all points to A FED behind the economic curve and a new administration not as market sensitive as the current... It also suggests that interest rates may actually go higher if the budget surpluses shrink or disappear... The market is reflecting these fears... Jim