A follow up to my previous posting on the Fed. Rumor has it (and in this
case I have it from a highly reliable gossip) that the Clinton
adminstration is using its proposed overhaul of bank regulations, which
would strip the Fed of much of its regulatory power, as a way of tying the
Fed's tightening hands. The line is that the administration will tolerate
a small (1/4 point) rise in short-term rates, but no more. Add that to
noises in Congress (not merely Gonzalez, whom no one takes seriously, but
serious folks like Sarbanes and Hamilton) about reforming the Fed, and
you're likely to see more words than action in the next few months.
Doug
Doug Henwood [[EMAIL PROTECTED]]
Left Business Observer
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