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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (3192)	1/26/2001 5:04:43 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 33421

Greenspan's greater receptivity to tax cuts may reflect two things: 1) an economy slowing much more than most economists have been willing to acknowledge with increased danger of a recession. 2) a preference to stimulate the economy more through tax cuts than through interest rate cuts. Higher interest rates provide more support to the dollar and dollar-denominated markets. Assuming tax cuts go through and provide both investment and spending support to the economy, we might see much more modest future rate cuts by the Fed than many have expected.