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

To: MythMan who wrote (15033)	1/8/1999 6:10:00 PM
From: yard_man	Read Replies (2) \| Respond to of 86076

250 point crash up on Monday -- count on it ... biz.yahoo.com Fed's Rivlin voices concern about U.S. stocks NEW YORK, Jan 8 (Reuters) - Federal Reserve Vice Chair Alice Rivlin said on Friday the December U.S. employment report shows a strong pace of economic growth but that surging U.S. stocks and the situation in Brazil were cause for concern. The second-highest ranking policymaker, in an interview with the financial cable network CNN-FN, also said the Fed expects the U.S. economy to slowdown to some extent. ''The strong employment report today indicated that the economy is still growing at a very healthy rate and labor markets are very tight,'' Rivlin said. U.S. December payrolls were reported up 378,000 on Friday while the unemployment rate retested its cycle low of 4.3 percent. ''We lowered interest rates in the fall because we do expect the economy to slow dowm. We don't want it to slow down too much,'' Rivlin said. She was answering a question about whether the strong job report reflected the stimulative impact of the three interest rate cuts on September 29, October 15 and November 17 that the Fed said were aimed at alleviating stress on U.S. capital markets. Asked about the rally in U.S. equities that pushed the Dow Jones industrial average to a new record at 9643.32 on Friday, Rivlin said, ''There is reason for concern about the stock market that maybe the surge in stock prices is out of line with future earnings.'' (Note: this article is ''in progress''; there will likely be an update soon.)