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

To: rolatzi who wrote (17239)	3/22/2002 1:21:14 PM
From: GraceZ	Read Replies (2) \| Respond to of 74559

Yup, its when the Fed resists the market keeping rates lower than the market wants to take them that they set up a situation for inflation to get a foothold. If demand for funds picks up strongly they need to resist the political pressure to keep rates low. Right now, demand for funds is still pretty weak, as is evident in C&I. That could change in a jiffy if the end of the world scenario is no longer operational. Meanwhile, while everyone is focused on the FED they are ignoring all the other factors that allow inflation to get a foothold. This is what is so dangerous about the FED having such a high profile. People have almost completely ignored fiscal policy as the real boogey man.