Word: baumohl
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Dates: during 2000-2000
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...latest attempt to hamstring the swaggering U.S. economy just enough to keep inflation at bay. Businesses, especially capital-intensive ones like the dot-coms, have no love of more expensive money. But Father Greenback has sold the markets on his firm hand, says TIME senior economics reporter Bernard Baumohl, and a full half-point hike was the only way for Greenspan to reward that confidence now. "The markets were worried for a moment that the Fed was behind the curve, but Greenspan realizes that in spite of all the tapping of brakes with the five quarter-point hikes, the economy...
Moved PermanentlyMoved PermanentlyFortune Investor DataNot that inflation is actually apparent; witness Tuesday's pre-opening announcement that consumer prices were unchanged in April. "The markets are taking it on faith," says Baumohl, that Greenspan is right about lurking price pressures, and a half-point hike is seen as welcome proof of his vigilance. "Fifty basis points means the Fed is in charge again and inflation is under control," he says. "The markets have already discounted it. They're happy about it. Anything less would have be met with disappointment." A half-percent increase also raises the hope that this hike...
...With reporting by Bernard Baumohl and Julie Rawe/New York and David S. Jackson/Los Angeles
...overheating economy when the Labor Department reported that fewer Americans have filed joblessness claims in the past month than at any time since Richard Nixon's first term. "These numbers show us that we're clearly scraping the bottom of the labor pool," says TIME senior business writer Bernard Baumohl. "It means that we're probably going to see the unemployment rate, which is already at a record low, go even lower. And that could encourage the Fed to continue to raise interest rates...
...Securing traditional economic indicators, such as inflation, take precedence over what he's termed the "irrational exuberance" of day traders. "Alan Greenspan has always believed that at some point when the demand for wages exceeds supply it will lead to increased wages and then increased costs to consumers," says Baumohl. "For that reason we can expect another interest rate hike in May, but in light of these new statistics, the question becomes whether it will be the usual quarter-point hike or a full half-point increase...