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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (8729)	10/15/1998 6:41:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 86076

<<By moving between policy meetings, the Fed betrayed a quick escalation of concern among policymakers who, just three months ago, were inclined to tighten credit in an economy robust enough to spark inflation worries. On Thursday morning, Chicago Fed President Michael Moskow had stressed ''we haven't seen many signs of actual weakness in our domestic economy. The fundamentals remain strong.'' To many market watchers, the inter-meeting move underscored the fact the Fed -- which shares U.S. bank regulatory duties with other federal agencies -- may know about some looming financial disaster. ''The problem you have now is that you're bringing up the worry the Fed maybe showing some panic,'' said consultant and Fed watcher Cary Leahey. ''Once again, the question is 'do they know something we don't know,''' Leahey pointed out. ''Is there going to be some mega-failure in Japan or is there another shoe to drop with a hedge fund in the United States?'' The Fed's own announcement that started with the discount rate indicated the easing decision had been taken by the Board of Governors who decide on the seldom-used rate governing borrowings at the Fed's window. David Resler, managing director at Nomura Securities International, said the Federal Open Market Committee (FOMC) had likely introduced an easing bias as its last meeting on September 29 when it cut the funds rate by 25 points. ''The final word was most certainly (Fed Chairman Alan) Greenspan's,'' Resler said. ''Greenspan must be recognizing the importance of what people in the market are seeing days in and days out, difficulties in financing anything.'' Resler said the inter-meeting move was ''more likely aimed at preventing an imminent catastrophe by a major player in the financial world rather than as a response to a specific event of financial distress.'' >>