The Treasury is issuing $37 billion worth of additional supply and that's leading to some indigestion in the markets as well.
We are still seeing pockets of strength, and pockets of weakness, and while I don't think the Fed will move in December, I do think we will see further rate cuts in '99.
It's not worse than what we've seen, so I think the market can weather it.
There's no sign whatsoever that strong (economic) growth is leading to higher inflation. The Fed is not going to upset the apple cart.
The thing yesterday for the first time in a long time was reduced risk-aversion...it was the reverse of the flight-to-quality.
There is a lot of speculation out there about what prompted the move. Some have said there may be another hedge fund blow-up out there.
The whole debate about whether deflation is a risk has come full circle.
This tells me the Fed is correctly looking forward, looking at the risk of consumers pulling back in spending because stocks have fallen. They're working in anticipation of that to make sure the U.S. economy does not slip into recession. I'm very encouraged by the Fed's action.
The U.S. economy is quite strong right now; however, globally there are still a good number of risks which exist.
The sentiment we have seen with the stock market correction -- I think it is something the Fed is worried about.
