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To: KENNETH R SANDERS who wrote (35855)	3/27/1998 2:01:00 PM
From: James Fink	Read Replies (5) \| Respond to of 176387

The following article suggests that interest rates are going up. This is not good news for the market -- or for DELL: Friday March 27, 1:37 pm Eastern Time Fed banks said to maintain hawkish views in 1998 By Isabelle Clary NEW YORK, March 27 (Reuters) - Federal Reserve policy is retaining a strong anti-inflation undertone as Fed banks are expected to keep on voicing traditionally hawkish views despite the expected impact of the Asian crisis on the U.S. economy, Fed watchers said on Friday. ''Over the past week, the sentiment in the market has changed with talk resurfacing that the next interest rate move would be for tighter monetary policy,'' said Daiwa Securities America chief economist Michael Moran. Fed Board data released on Wednesday showed that six of the 12 Fed banks had requested an increase in the discount rate on 34 occasions in 1997. The Fed banks' requests - each for a 25-basis-points hike -- did not sway the Fed Board to change the discount rate that it last lowered to 5.00 percent on January 31, 1996. Moran said the Fed banks' report reminded market players ''there's at least a balanced risk to the economy. Many people are now admitting that the next change easily could be for tighter monetary policy.'' The report about the Fed banks' discount rate intentions came amid news of a continuously strong housing market and bright employment prospects as shown by Help-Wanted ads. ''Everyone had been banking on Asia slowing the U.S. economy down,'' Moran added. ''Now, people are considering the possibility we might be able to absorb Asia, even with a soft Japan, and still end up with a strong economic performance.''