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To: Druss who wrote (5817)1/31/2001 11:50:04 AM
From: Tom Hua  Read Replies (1) | Respond to of 19633
 
Druss, I agree with you completely. Because rates cut now won't be felt in the economy until 2H/01, the Fed's immediate objective is to help restore consumer confidence. Afterall, 2/3 of the GDP is due to consumer spending. A 75 bp would have a negative effect much like 25. If the economic data next week show a worsening economy, they may do another inter-meeting cut of 25, followed by 25 on March 20.

Regards,

Tom