5/24/04

Fed Balancing Act

Hello!

The Fed has a tough balancing act this quarter. With first quarter earnings coming in somewhat higher than expected, words like "measured" and "balanced" are peppering comments from Fed leaders thus hinting that some rate hikes may loom ahead. Mr. Greenspan has been nominated for another term, so it may be unlikely we will experience a repeat of the restrictive policies of 1994. Some analysts say that as many as four rate hikes already may have been priced into the bond market.

Economic indicators to look for this week: Tuesday -- Consumer Confidence and Friday -- Personal Income.

Due to the holiday weekend, the next weekly e-Update will be published Tuesday, June 1st. Have a pleasant and safe Memorial Day!

Terri G. Millson, CIMC President

Ray Dicius, GEPC LPL Branch Manager