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To: H James Morris who wrote (116162)1/24/2001 3:49:49 PM
From: The Reaper  Respond to of 164684
 
<"If they do 25 basis points," Holland warned, "the market will head into a free fall.">

I can make a case for the Fed not easing at all at the end of January. The Fed has been pumping M3 at a 22% annual clip since Dec. 18. They know that they're flooding the markets with liquidity. In order to not allow another "irrationally exuberant" market to come about, I would not be totally surprised to see them keep rates where they are. The Fed knows the liquidity is there. They were not even increasing at this rate during the Y2K liquidity infusion. They are afraid of something. my guess is the power situation in CA. The Fed wants to make sure that the capital markets are liquid in case something goes awry here.
If a 50 pt. ease is built in to the markets and no easing surfaces......well.

kirby



To: H James Morris who wrote (116162)1/25/2001 7:19:03 AM
From: Mark Fowler  Read Replies (2) | Respond to of 164684
 
"If they do 25 basis points," Holland
warned, "the market will head into a free fall." <

i don't think so!