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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Luce Wildebeest who wrote (39646)	5/11/2001 2:09:08 PM
From: IQBAL LATIF	Respond to of 50167

That is the whole point market wants more rate cuts because rate cuts are known to rally the market but rate cuts is not the goal if the economy is healthy that is good enough, it surely shows how shallow the market maker think. Imagine if we had terrible retail sales indicative of real deflation than we would be like Nikkei, a down free fall, we are here to define these fine issues, before events happen that is what our goal should be. Nice that you picked it up and I am very happy.

To: Luce Wildebeest who wrote (39646)	5/11/2001 7:47:54 PM
From: IQBAL LATIF	Respond to of 50167

This is the report towards market end.. When Good News is Bad News Just last Friday, the markets rose on a weaker than expected jobs report, which had traders hopeful for a big interest rate cut. Today the opposite was true. A slew of economic data, mostly positive, had the markets seeing red today as investors feared the new data might lead the Federal Reserve to move less aggressively in cutting interest rates when the central bank meets next Tuesday. The University of Michigan’s preliminary May consumer sentiment index rose unexpectedly this month to 92.6. Economists had been expecting a fall to 87.6. Today’s report suggests that consumers are not feeling especially pinched amid a slowing economy and a rising unemployment rate, leaving some convinced that this will cause the Fed to slow or stop their string of interest rate reductions. This information along with a stronger than expected April retail report, illustrates that consumer spending is healthy. The Producer Price Index (PPI), a key gauge of inflation at the wholesale level, jumped more than expected, leaving open the possibility that the economy is experiencing stagflation. Stagflation is higher inflation coupled with slowing economic growth. Inflation is one of the main concerns the Fed has when lowering rates.