Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (7638)	8/23/2001 3:28:29 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 74559

is the money pump starting to clog?? The absence of clear signs of inflation gave the Fed room to cut its target for the key federal-funds rate by a quarter point to 3.75% -- the central bank's sixth cut of the year. At the time, the Fed said it was ready to cut rates even further if necessary. The central bank did just that on Tuesday, trimming the fed-funds rate another quarter point to a seven-year low of 3.5%. (Minutes of that meeting won't be available until early October.) Only one member of the committee dissented from the June rate cut. William Poole, president of the Federal Reserve Bank of St. Louis, argued that the Fed's policies had already become "so expansionary that further easing ran an unacceptable risk of exacerbating inflation over time." But the minutes show that various officials believed the central bank had to be careful and not overdo the credit easing. "In the view of a number of members, the committee might well be near the end of its easing cycle," the minutes said. "At the same time, several emphasized that they did not want to rule out further easing later if warranted by the tenor of incoming economic information." interactive.wsj.com