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To: Investor2 who wrote (5197)	5/17/1999 2:46:00 PM
From: Wally Mastroly	Respond to of 15132

Re: FED tightening saga..again: biz.yahoo.com Some snipits: "..If the Fed announces on Tuesday .. - that it has endorsed a tightening bias, this would be a first for the Fed, which has never in its 86-year history immediately disclosed its future intentions. While the Fed intends such an announcement to help avert shocks to financial markets, it could trigger some selling of U.S. stocks and bonds, which have benefited so far from a low-interest rate environment..." AND: "..The Fed has said it will -- at some unspecified point -- start announcing important shifts in its monetary policy outlook as part of an effort to avert huge swings in stocks and bonds by keeping financial markets abreast of its intentions. Many analysts think the adoption of a ''tightening bias'' on Tuesday would qualify as a major policy change, since the Fed's last overt moves were a series of three interest rate cuts in late 1998 in response to the global financial crisis..."

To: Investor2 who wrote (5197)	5/18/1999 9:42:00 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 15132

I2, Re: ..possible Fed bias toward tightening... The more I look at recent economic data, the less I see enough of a change to determine a "trend". I would think more than one months data would be needed by the Fed to change any bias (But what do I know?). I also remember Greenshades mentioning recently the positive affect of productivity in holding inflation in check. Other than this last month's jump in CPI, the only thing that bothers me is the jump/rise in energy prices. Oil prices seem to be continuing to rise lately - not just this month's big pop. Although most analysts seem to downplay the volatile energy factor relative to the indices, I think that it could cause inflation to creep back in to the picture. The possible ripple effect of any continued rising energy costs on many parts of the economy is troublesome to me. ..Just thinking out loud... Take care, Wally M.