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To: GVTucker who wrote (129892)	3/14/2001 9:26:25 AM
From: Road Walker	Respond to of 186894

GV, re: "The thing that the Fed needs to do is reduce the surprise, not increase it." Well the timing of the action would be a surprise, but the market's could price things in more in real time. The formal meetings create an artificial marketplace, not real time situation. And it also makes their response to the markets look like they are not dynamic and important, but a casual once a month decision. re: "Then, the next step would be to eliminate the Fed, and replace it with a computer." I disagree with this. An important FOMC function is symbolic, a timely rate cut (or increase) can keep things from getting out of hand. Today might be a good example of things getting out of hand. If they didn't have a meeting on Tuesday, then an interest rate move, or even a non interest rate move today, could send a signal to the markets. A computer couldn't do that (well maybe it could, but I wouldn't want a computer making human sentiment decisions). John