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To: D.J.Smyth who wrote (65914)	9/17/1998 11:18:00 AM
From: Lee	Read Replies (1) \| Respond to of 176387

Darrell,..Re: in Greenspan speech yesterday he stated that Fed had abandoned its upward bias toward rates You are correct. In August, it seems that the FOMC abandoned the tightening bias and went to neutral. The first hint of this was in AG's Sept. 4th address at U CAL. The second hint was yesterday. Prior to the market sell-off, I would have bet money that the Fed would not lower rates until DOMESTIC eco numbers definitely showed weakness, but global political pressures are being exerted now. And the fact remains that during the market crisis in '87, the Fed did step in to provide liquidity both in the form of cash and a rate cut. In case anyone is interested in the numbers, following are CPI and trade balance numbers and analysis. Notice the CPI may have put in a bottom a couple of months back. dismal.com CPI dismal.com CPI Analysis - ex Food & Energy up 2.5% yr/yr dismal.com Trade Balance dismal.com Trade Balance Analysis - Numbers while dollar still high. Will post links to the actual BLS CPI report if anyone is interested. Although, many in the media claim the economy is slowing, it's not readily apparent in the numbers yet. Also, the Shadow Open Market Committee is still calling for a rate INCREASE. Will post that story if anyone interested. Regards, Lee

To: D.J.Smyth who wrote (65914)	9/17/1998 11:19:00 AM
From: Gabriel008	Respond to of 176387

Darrell, take that comment re. unemployment rates in conjunction with Rubin's recent comments that what is good for the US is good for the rest of the world. If the US starts experiencing inflation that is not good for the rest of the world. Ergo, regardless of what Greenspan states publicly the FED as a voting body has continued to show a bias towards raising rates - but, it doesn't mean they will. Rather, it means they will not reduce rates.