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To: Sam Sara who wrote (89448)4/3/2001 5:47:05 PM
From: pater tenebrarum  Respond to of 436258
 
well, for one thing the most recent economic data have been less weak than anticipated, and the credit markets are not in seizure mode yet. however, we're getting closer to the point where several biggies need to refinance commercial paper coming due, which is what brought us the January surprise cut (imo).

one thing generally downplayed by Fed officials is that the danger of inflation hasn't been banished completely yet. i'd regard any further uptick in inflation as a cyclical blip within the larger deflationary trend, but THEY don't know that...-vbg-