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To: Tradelite who wrote (42294)5/27/1999 9:14:00 PM
From: Internet Jones  Read Replies (1) | Respond to of 120523
 
Interest rate fears may be unfounded, but Alan will not hesitate to raise rates as soon as evidence of inflation appears. The Fed will pre-empt inflation, no matter what it costs. So unless we get good numbers on the PPI and CPI and purchasing manager's index, the Fed will start raising right away. The reason is that they need a couple of points on interest rates to effect inflation, and they only raise a quarter of a point at a time. So if they start in June, they will raise all year, like 1994.

But if the numbers don't require it, they won't do it, for the reasons you mentioned, and also because more than half the world is still in a recession or depression, plus there is a war going on.