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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: gregor_us who wrote (6133)	5/11/2004 2:23:58 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Fed's Moskow: Little sign of significant inflation rise Tuesday, May 11, 2004 6:31:13 PM CHICAGO (AFX) -- While the rate of U.S. inflation appears to be on the rise, the increase is not substantial enough to worry Chicago Federal Reserve President Michael Moskow. "A year ago, we were worried about unwelcome disinflation; that concern has now subsided. But I do not see broad-based pressures developing that would lead to a significant increase in inflation," he said in prepared remarks to the Green Bay, Wis., Chamber of Commerce. Moskow conceded, however, that once the U.S. output gap closes and inflation risks become more apparent, the Federal Reserve will have to respond with higher interest rates. "Our economy has begun to meet the challenge of the jobless recovery. We cannot maintain this degree of policy accommodation indefinitely," he said. Moskow does not hold a vote on the Fed's rotational interest-rate panel this year, but does participate in policy meetings. Short-term interest-rate futures contracts reflect financial market expectations for the Fed to hike its current 46-year-low 1 percent borrowing target by August. Some see a chance the central bank raises rates as soon as next month fxstreet.com

To: gregor_us who wrote (6133)	5/11/2004 2:26:41 PM
From: mishedlo	Respond to of 116555

Treasury sees weaker demand at 3-year note auction By Rachel Koning CHICAGO (CBS.MW) -- The Treasury Department sold $24 billion in 3-year notes on Tuesday at a yield of 3.199 percent. Demand for the notes was weaker than at the last 3-year auction, which was held in February. For the so-called bid-to-cover ratio, the agency received $2.08 in bids for every $1 of securities it sold on Tuesday, down from $2.27 in February. Tuesday's auction was the first leg in the government's quarterly borrowing package. The agency will sell 5-year and 10-year notes in separate auctions on Wednesday and Thursday.