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To: Windseye who wrote (89368)1/30/2001 9:21:48 PM
From: MeDroogies  Read Replies (1) | Respond to of 97611
 
That isn't their job. Uncertainty is what makes them effective at what they do. If you know their moves before they make them, you can win on the arbitrage...that's why it's best to keep it close to the vest. That way, you can be sure that there is some number of people willing to take a position against a particular move.
If it is ABSOLUTELY clear what they are going to do, then it wouldn't matter whether they published or not (our current condition...it's pretty clear what's going to happen)...because the move gets built into prices.

Finally, their moves shouldn't be based on supporting the market. Their moves should be geared toward reducing inflation and maintaining growth. Both of which they have done spectacularly for 14 years.



To: Windseye who wrote (89368)1/30/2001 11:33:56 PM
From: Captain Jack  Read Replies (1) | Respond to of 97611
 
Windseye -- since the only inflation that existed only existed in AGs feeble mind there was no reason for the last 2 rate increases (3/4%). He now sees his stupidity and that is why he jumped on Bush's tax relief bandwagon when he really does not want a tax cut! He cannot go out more than 3 months as it takes 6 - 9 months to get an idea of the effect of rate changes (more proof of his senility on the last 2 increases). Now he wants to go down in history as being a great guy (he undoubtably will not be around a real long time) instead of the cause of the '01 recession--- too late Uncle Al!