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To: Bob Kimball who wrote (2663)	11/11/1997 9:47:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

Bob, It ain't gonna happen this month. The world is in the middle of a currency crisis vs the US Dollar. Raising rates in the US would strengthen the dollar further and cause panic in the currency markets. You're right about the tight labor markets and the Fed's concern. However, the Fed will put their domestic agenda on hold, and wait to see if declining US exports slow the economy enough on their own. Secondly, the currency crisis is deflationary. It may do the Fed's work for it. I can imagine a scenario where the next Fed move is to lower rates...in order to bring the dollar down. The Fed is in a serious bind here.