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To: Aitch who wrote (44217)	1/20/1999 8:14:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

H: Greenspan has to consider the relative strength of the dollar: he does not want to lose too much of its value against the Euro or to gain too much against the Pound Sterling. When the Bank of England reduces interest rates (and it has perhaps another 2 1/2% to go down before it meets the Euroland rates as they are rising in a year or two) this would make the dollar much more attractive to hot money, and a stronger dollar would inhibit US exports and put the US at a disadvantage in world markets against countries using the Yen or the Euro or the Pound Sterling. It is important for the US and the world economy that the US does not go into recession. Therefore, falling rates in the UK and continuation of low rates in Europe will provide context for Greenspan to lower rates in the US or at least to ignore the advice of those who want a rise to inhibit the stock-market.