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To: sammaster who wrote (35498)	4/22/1999 12:47:00 PM
From: Defrocked	Respond to of 86076

I'll be watching this afternoon's releases. But the market has been doing the "tightening", not AG. Fed funds targets are unchanged as is their general posture, one of "wait-to-see-the-whites-of-inflation's-eyes before acting".(A policy forced by the equity bubble and politics.) Any recent decline in money growth rates is an artifact of the six-month/three-month growth-envelope calculation because they juiced the system so greatly last fall IMHO. If anything can slow equities down it will be unexpectedly strong Q1 GDP(>3.5%) and a strong employment report May 7 that results in Fed action. But the Fed is hampered by the bubble and will not act until inflation is deemed serious again. Hence, bonds are backing up to reduce the risk of higher-than- anticipated growth and delayed Fed inaction. After all, if we were sure the Fed would tightened, a bid could actually reappear in bonds instead of the flurry of current offers. BIOG.(But I'm only guessing.<g>)