Analysts Doubt Fed Will Move under Latest Reports

By McClain, John D. | THE JOURNAL RECORD, July 2, 1996 | Go to article overview

Analysts Doubt Fed Will Move under Latest Reports


McClain, John D., THE JOURNAL RECORD


WASHINGTON -- Conflicting reports on the economy Monday are causing many analysts to believe Federal Reserve policy makers will keep short-term interest rates unchanged this week.

"This is more argument to wait for more evidence," said Robert G. Dederick, economic consultant for Northern Trust Co. in Chicago.

"The evidence to date is not the sort to send out fire engines."

Until recently, many analysts believed the Federal Open Market Committee would raise rates at its two-day meeting beginning today to keep the economy from overheating and causing inflation to boil over.

However, recent economic reports have been mixed, leading analysts to suggest the committee would not act until later this year when more information is available.

"It's my belief they will have a vigorous debate, but won't change policy," economist Richard Berner of Mellon Bank in Pittsburgh said. "I do think that at some point, and not too far off, they will have to change policy."

Stephen S. Roach, an economist at Morgan Stanley & Co. in New York, agreed. "I think they should tighten rates, but I don't think they will," he said.

Amid the uncertainty, investors remained cautious, although stock prices rose.

The FOMC cut the federal funds rate to 5.25 percent from 6 percent in three steps ending Jan. 31 of this year when the economy appeared to be stalling. The funds rate is what banks charge each other for overnight loans.

When it meets today, the FOMC will be at full strength for the first time in months. Former White House budget director Alice Rivlin was sworn in as vice chairman last week and St. Louis economist Laurence H. Meyer took office as a Fed governor.

At their confirmation hearings, both voiced support of the anti- inflation policies of Alan Greenspan, who began a third term as chairman last week. Thus, analysts expect little change in monetary policy.

The FOMC is composed of the seven Fed governors and five of the 12 presidents of the regional Fed banks. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Analysts Doubt Fed Will Move under Latest Reports
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.