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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (9549)	11/12/1997 11:48:00 AM
From: Harvey Allen	Respond to of 94695

Wednesday November 12, 11:04 am Eastern Time Deutsche economists see 1/4-pt FOMC Fed rate hike NEW YORK, Nov 12 (Reuters) - Economists at Deutsche Morgan Grenfell (DMG) said the odds marginally favor a 25-basis-point hike in official interest rates at Wednesday's Federal Reserve policy setting meeting. That bucks the overwhelming view that the Federal Open Market Committee (FOMC) will leave monetary policy alone at this meeting due to turbulence in global equity markets. ''The view from here is that the odds are marginally higher the Fed is going today,'' said Joseph LaVorgna, financial economist at DMG. ''The main reason is that people are saying the Fed can't go based on what is going on overseas, but we don't think they're as compelling as what's going on here (the U.S.).'' LaVorgna said that Fed Chairman Alan Greenspan had warned on least three occasions this year that maximum sustainable growth was the longer-term objective of the Fed and that in assessing sustainable growth Greenspan has often looked at the labor market. The U.S. unemployment rate fell to 4.7 percent in October, its lowest level in more than 23 years. LaVorgana said that despite recent falloffs, stock prices were still higher than they were when Greenspan made his ''irrational exuberance'' comment late last year. The impact of turmoil in Asia on the real U.S. economy is not significant, he said, at best leading to only a 0.2 percent decline in Gross Domestic Product. biz.yahoo.com