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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (4315)	5/3/2002 11:30:18 AM
From: ahhaha	Respond to of 24758

FIBER US inflation index up for 3rd month in April Friday May 3, 9:34 am Eastern Time Reuters Market News NEW YORK, May 3 (Reuters) - The Foundation for International Business and Economic Research (FIBER) said on Friday its Leading Inflation Index rose for a third straight month in April, as economic recovery begins to stir long-dormant inflation pressures. The Leading Inflation Index rose to 93.3 in April, a nine-month high, from a downwardly revised 92.1 in March. The smoothed growth rate rose to 2.4 percent in April -- its highest level in two years -- compared with a downwardly revised -0.9 percent in March. FIBER said a rise in its industrial materials price index and the Institute for Supply Management's price index contributed to the gain. When FED intervenes to fix the price of money in the interbank market such interference takes a long term economic trend and flattens it into economic cycles of ever greater swings in output amplitude and little net advance. During the early recovery period the recovery of price isn't a negative either for economy or stock prices, but as the recovery widens price gains exceed output gains under interventionism. This doesn't happen when FED exclusively fixes the rate of growth of money supply. Price gain co-parity doesn't happen because it can't. It's constrained at the margin by infinitesimal fluctuations in the price of money. FED isn't allowing such fluctuations because they fix the price currently at 1.75%.