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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (5494)	5/29/1999 5:51:00 PM
From: Ian@SI	Respond to of 15132

And Barron's also had a little piece on the fed... ... But recent news that the consumer price index surged a hair-raising 0.7% in April had Wall Street thinking the Fed will abandon its experiment to see if the economy is less prone to imbalances than in the past. The Fed's adoption of a bias toward tightening seemed to validate such fears. Unfazed, Rivlin has a message for the bond market: Calm down. "Except for the recent CPI number, we've had good growth with very little inflation," the Fed vice chair said in a recent interview with Barron's. "One month of statistics doesn't tell you anything and so I'm always reluctant to make much of it." Until further notice, the experiment continues. Rivlin downplayed reports that the central bank's tolerance for above-trend growth and declining unemployment has run its course. Rather, policy makers continue to be impressed -- and perplexed -- by what's occurring in the economy. Rising productivity and increasing competitiveness in the global marketplace, she argued, still hold the promise of restraining the kinds of upward price pressures that prompted the Fed to take away the punchbowl in past business cycles. ... Whole story at interactive.wsj.com