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To: Return to Sender who wrote (32270)	5/16/2001 3:22:35 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68461

Hi RTS, The extent of the rate cut surprised me. Given that the trade surplus is coming down and inventories came in lower than expected if expect 1/4 to no rate cut. I am surprise the FED is suggesting that inflation is not an issue. The higher price of energy alone should lead to increase prices despite the excess capacity. Companies can keep trying to artificially hold prices low without triggering a recession. I don't think we see the real impact of the rate cut till after trader flatten their option positions on Thursday. I know some analyst are already talking about the FED having to raise rates in the fall to offset inflationary pressures.