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To: Boplicity who wrote (35870)	3/27/1998 3:57:00 PM
From: James Fink	Read Replies (3) \| Respond to of 176387

Greg, Last time I checked, the public interest mandate of the Federal Reserve was to promote price stability in the United States, not prop up corrupt Asian regimes. If you think the Fed should care more about Asia than the United States, you do not deserve your American citizenship.

To: Boplicity who wrote (35870)	3/27/1998 4:04:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Greg, You are correct. The reasons why you are correct will be emerging in the next two weeks. Regards, Jim Kelley

To: Boplicity who wrote (35870)	4/2/1998 4:02:00 PM
From: James Fink	Read Replies (2) \| Respond to of 176387

<<Yeah sure the FED is going to raise rates. Just the thing to do for the Asian economies. WRONG.>> It is hard to believe that you are the CEO of anything except the monkey house. You know nothing about FED policy as the following article so amply demonstrates: Thursday April 2, 3:20 pm Eastern Time Some FOMC members in Feb expected rate hike later By Isabelle Clary NEW YORK, April 2 (Reuters) - The Federal Reserve on Thursday lent suppport to speculation its next policy move may be an interest rate hike by showing that policymakers were still concerned about inflation in early February. The minutes of the policy-making Federal Open Market Committee (FOMC) meeting held on February 3-4 said, ''A number of members expressed the view that the next policy move was likely to be a tightening action.'' The FOMC voted 12-0 to leave the 5.50-percent federal funds rate unchanged in February and to retain a neutral directive. The FOMC has since met on Tuesday and again left the funds rate unchanged. The discount rate has been at 5.00 percent since January 1996. ''We are still in a period when the unemployment rate is really low and that scares a lot of people. There are a number of Phillips-Curve adherents on the FOMC and the lower that rate goes, the more they see the potential for inflation to go up,'' said deputy chief economist Carol Stone of Nomura Securities International. Stone added that the FOMC comments put the focus back on U.S. jobs data and wage gauges. Economic forecasts based on the Phillips Curve theory assume that, at one stage or another, excessive demand will translate into higher inflation. One application of the Phillips Curve is the NAIRU, or non-accelerating inflation rate of unemployment. Its proponents -- several of whom are FOMC voters -- long believed inflation is bound to rise with a jobless rate lower than 5.75 percent. Stone said the relatively hawkish FOMC comments triggered a short-lived quarter-point dip in the 30-year Treasury bond. Stone said the market recovered promptly because it had already removed easing hopes prompted by the Asian crisis. The FOMC meeting minutes also showed that only one FOMC member saw greater odds that the Fed's next move would be to lower interest rates. Stone added that the Fed's concern about ''whether or when tightness in labor markets would exert a more pronounced effect on labor costs and ultimately on price inflation,'' gave an added importance to Friday's release of March employment data. The consensus in a Reuters poll anticipated the creation of 220,000 payroll jobs in March versus 310,000 in February, with the jobless rate steady at 4.6 percent. Average hourly earnings are seen up 0.2 percent versus up 0.6 percent in February. Michael Moran, chief economist at Daiwa Securities America Inc., said the minutes of the December FOMC meeting -- when the Fed removed its long-standing tightening bias -- already indicated some FOMC members believed in a rate hike down the road. ''People who are concerned about tight resource utilization still have a voice at the Fed. There are some factors in place that are holding inflation down for the moment. But with solid growth and tight resource and labor utilization, this remains an uncomfortable position for most policymakers,'' Moran added.