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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (50611)	8/15/2001 4:54:51 PM
From: Math Junkie	Read Replies (1) \| Respond to of 70976

I just heard somebody saying that 1/2 point would scare the market, because it would mean that the Fed does not see a recovery in sight.

To: michael97123 who wrote (50611)	8/15/2001 5:15:18 PM
From: Pink Minion	Respond to of 70976

Anyone believe that a 1/2 point cut (a)can happen (b) will have a positive effect on the market and (c) will have a postitive effect on the economy? a) Doubt it but who knows b) temporary bounce but we are testing April lows by this Oct. c) No. Lowering interest rates is suppose to stir production of goods ie. - build more mfg buildings, hire more people. We've got too much production as it is. We need to stir demand.

To: michael97123 who wrote (50611)	8/15/2001 6:12:27 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 70976

OT re: effect will the fed have on the market next week? 1. the Fed has clearly signalled that 1/2-point cuts are over. 2. a 1/2-point cut would be a big surprise. The markets could interpret that as: a) more stimulus for the economy b) more chance of inflation next year c) the Fed must be seeing something really ugly, if they are back to 1/2-point cuts Flip a coin, I haven't a clue 3. a cut now will have nil impact this year on the economy, and it's max effect on the economy in February 2003 (18 months from now).