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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (456)	7/6/2001 3:56:44 PM
From: craig crawford	Read Replies (1) \| Respond to of 1643

Friday July 6, 3:07 pm Eastern Time Fed Rate Cut Still in Play biz.yahoo.com By Marjorie Olster INFLATION FEARS VANISHING Any concerns about inflation in the market seem to have all but vanished with recent data, and economists said that gives the Fed plenty of breathing room to lower rates more. Energy and commodity prices are dropping and wage pressures are not growing. The employment report showed average hourly earnings rose 0.3 percent in June and 4.2 percent year-over-year. A number of economists said wage growth appears to have peaked and will now begin to fall as unemployment creeps up. ``With a global recession looming, underlying inflation pressures remain in clear retreat, affirming that inflation will continue to decline in the months ahead,'' said Lakshman Achuthan, managing director of the Economic Cycle Research Institute (ECRI). There is still considerable room for Fed forecasts to shift -- markets will have another month and a half of data before the August meeting and views could easily change. Should future data clearly indicate the economy has bottomed and is rebounding, more economists will likely count the Fed out for the rest of the year. ``I'm not convinced we'll see a rate cut at the August Fed meeting,'' said Stuart Hoffman, chief economist at PNC Capital Markets in Pittsburgh. ``Employment is a lagging indicator. It would not be surprising if the economy improves this summer.''