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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (56699)	4/20/1999 1:03:00 PM
From: valueminded	Read Replies (1) \| Respond to of 132070

Tommaso: Maybe I should restate my case. From what I have read, the FED is increasing the available reserves even though the demand for the money is not there at the 4.75% target rate. So the effect of the additional money is to lower the effective rate as they call it to something less than 4.75% (this morning indicated at 4.0 to 4.5%) This is not a case of stealth tightening, the only tightening that is occuring is that the demand for money is going down. My only point is the FED is not orchestrating a "stealth tightening", in fact it is trying to be accomodative to easy money by adding sufficient reserves to move the effective rate to drop below the "target rate" At least that is how I read it.