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To: billwot who wrote (19290)4/28/1998 5:42:00 AM
From: Frank Ellis Morris  Read Replies (1) | Respond to of 27012
 
Good Morning Billwot,

I think the fed from time to time likes to stir up the troops with interest rate hike fears. This in turns spooks the bond pits and the desired results is achieved by market forces.Stock prices are driven down and this frees the Federal Reserve board from having to do the dirty work itself. Since the outcome is reached the Fed says ok boys lets go home. We did not say irrational exuberance this time but everyone got the message.

Best Regards
Frank



To: billwot who wrote (19290)4/28/1998 8:16:00 AM
From: John F. Dowd  Respond to of 27012
 
Dear billwot:

It would seem that a rate hike might be burdened by unintended consequences such as the dollar getting too strong. This would attract further speculation in our markets by the usually late Europeans as well as encourage Americans to import cheaper goods especially from Asia. So unless this is part of the concerted effort to help Japan and to show good will towards their latest stimulus initiative it is probably no more than sabre rattling on Greensponges part.

JF Dowd