Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: U.S.Monetary Policy

[Doug Henwood]

Edwin Dickens wrote:

>Presumably by "tighten more" you mean abandoning the 25-basis-point
>increases in the Federal funds rate and the discount rate at each FOMC
>meeting, for 50-basis point increases at meetings or even increases between
>meetings?  At this point, without spikes in the price indexes to justify
>such a change, either strategy could be interpreted as a sign of panic--a
>nice way to unhinge the dollar?

Dunno, but there's a piece in the current Fortune claiming that Alan 
G. really really wants the stock mania to stop, so rates may rise 
more and more quickly than anyone ever knew. Hard to tell whether 
this is well-leaked or just the reporter's speculation though.

Doug