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To: flatsville who wrote (67759)	2/14/2001 4:52:20 PM
From: KyrosL	Read Replies (2) \| Respond to of 436258

The drain and pumping is strictly a function of how much money "the market" wants at the interest rates set by the Fed. If the market wants more money, the fed funds rate rises above its target and the fed pumps to bring it down. If the market does not want any more money, the fed funds rate drops below its target and the fed drains to bring it up. So, the draining operations of the last few days mean that the market is sated with money at the current fed funds rate.