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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (57631)	1/12/2001 3:04:35 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

Funny. We have porta-ledges en route to all three of those places and a fourth constantly aloft for the unexpected.

To: pater tenebrarum who wrote (57631)	1/12/2001 3:05:12 PM
From: Cynic 2005	Read Replies (2) \| Respond to of 436258

And now, a word from the spin-team! biz.yahoo.com <<Friday January 12, 1:18 pm Eastern Time Top Fed Official Says Bank on High Alert By Michael Kahn OAKLAND, Calif. (Reuters) - The Federal Reserve will do whatever is necessary to ensure the U.S. economy remains strong and stable, Fed Vice Chairman Roger Ferguson said on Friday, signaling the central bank remains open to further cuts in short-term interest rates. Addressing a group of business people in Oakland, Calif., Ferguson said the Fed was closely scrutinizing all incoming data on the world's largest economy -- which has slowed dramatically after almost 10 years of non-stop growth -- and was keeping an open mind as to its future rate actions. ``The Federal Reserve will continue to analyze the incoming information carefully and will act prudently and forcefully'' to promote stable prices and strong growth, Ferguson said. He was the first top-level Fed official to speak after the central bank slashed key short-term rates by an aggressive half percentage point at the start of the year -- between regular policy meetings -- to keep the economy from hitting a wall. Most economists expect another rate cut when the policy committee holds its next scheduled meeting on Jan. 30-31. ``Although I generally favor making policy decisions at our regularly scheduled meeting, we must remain flexible and be prepared to respond quickly and firmly to developments that deviate significantly from our expectations,'' Ferguson said. Ferguson forecast a period of ``notable weakness'' early this year, with activity picking up later on the back of continued productivity gains. He cited private sector forecasters who expected the economy to grow by 2-3 percent this year. WHAT'S GOING ON? However, Ferguson cautioned that the economic outlook was characterized by ``more than the usual amount of uncertainty at this juncture''. While demand had weakened more than businesses had anticipated, and inventories had built to uncomfortably high levels in some sectors, Ferguson said businesses were moving fast to adjust levels of production. Lower interest rates also should help boost the level of demand, he added. Ferguson insisted the Fed had cut rates earlier this month because the economy needed it, not because the central bank was aware of any developments that markets did not know about. (LOL!) ``Taking a policy action between meetings surprised some observers, and some have asked, 'What does the Fed know that we don't?' The answer to this question now, as in nearly every situation in which we change policy, is -- 'very little, if anything','' he said. Ferguson reiterated that the Fed was acting on information about the real economy and not trying to target stock prices. (HUH!!!!!!!!!!!!!!!!!!! And then this Clinton Desciple added....) But he added: ``Equity markets obviously do have spillover effects on the real economy and, thus, need to be considered in assessing the aggregate balance of supply and demand.'' (My note: Using the cliche, "Yes Virginia, we try to rescue the stock speculators.") Ferguson, as usual, did not directly discuss what level of interest rates he expected in the near future, saying this would depend on the economy's performance. But he also noted that rates would in part depend on conditions in financial markets as well as investors' appetite for risk. The Fed's Jan. 3 shock rate cut was the first time the Fed had lowered borrowing costs between regular meetings of the rate-setting Federal Open Market Committee since the fall of 1998, when a global economic crisis threatened to seize up financial markets in the United States and far beyond. Ferguson also said expected the central bank would have a ''very good relationship'' with the incoming administration of President-elect George W. Bush, who has cited the U.S. slowdown under way as an argument for pushing through his proposal for a massive $1.3 trillion tax cut. ``One of the things that has emerged over time is an obvious respect for the independence of the Federal Reserve, which I expect to continue with the new administration,'' Ferguson said, noting that former Fed governor Lawrence Lindsey now was Bush's top economic adviser.