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

To: Jerome who wrote (51818)	9/10/2001 9:50:01 AM
From: michael97123	Read Replies (1) \| Respond to of 70976

Big deal! Heres a fed governor with his head still in the sand. Whether this ever becomes an official recession is not the point. It has only cosmetic value. From the high economic growth rate we had to Zero is a bigger drop than most recessions. And to worry about future inflation in a period of deflation is about as silly as the lockbox. mike day September 10, 9:44 am Eastern Time Fed's Poole-excellent chance of avoiding GDP drop (UPDATE: adds more Poole comments in paragraphs 4-6) NEW YORK, Sept 10 (Reuters) - The U.S. economy has an ``excellent'' chance of avoiding a fall in real gross domestic product despite last week's dour employment report, Federal Reserve Bank of St. Louis President William Poole said on Monday. -------------------------------------------------------------------------------- ``No one know for certain whether the economy can escape an actual decline in real GDP, but the fact that we have done so to date and that many adjustments are now well along suggests that we have an excellent chance of doing so,'' Poole told economists at the annual National Association for Business Economics in New York. The central banker voted against the Fed's quarter-percentage point interest rate cut in June. He said last week that was because he was concerned the Fed was ``overdoing it.'' He repeated this concern in his New York address: ``The central bank ought not to pursue the goal of stabilizing economic activity so aggressively that it runs any substantial risk of compromising the goal of low inflation.'' He said declining interest rates -- the Fed has cut rates by three percentage points this year -- had helped support aggregate demand despite the sharp slowdown in the high tech part of the economy. But he added that the Fed should not have goals for levels of economic growth as they ran the risk of a major monetary policy mistake. Poole said consumption growth was holding up ``okay'' despite growth in the overall economy slowing to a crawl this year. He added that there was no guarantee that demand in sluggish sectors like information technology would rebound quickly either next quarter or the one after.