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Ironically, the Fed's get-tough stance came just hours after a Commerce Department report showed that the "core" rate of inflation (the Consumer Price Index with volatile food and energy prices omitted) had fallen to an annual rate of 2.4% in April, down from 4.8% in March. That led Senator Tom Harkin, an Iowa Democrat, to denounce the FOMC increase as "clearly excessive" at a time when "accelerating inflation is not apparent." If this continues, says Harkin, "our economy is going to bleed to death." In other words, the Democrats need a slowing economy in an election year like...

Author: /time Magazine | Title: Who's Raising Your Rates? | 5/29/2000 | See Source »

...wind. Tuesday, week-old worries about another interest rate raise in the wake of last week's half-percent hike comments hit the Dow for 120 and the NASDAQ for 200 (to 3164, low for the year), a disproportion that is becoming old hat for index watchers...

Author: /time Magazine | Title: How NASDAQ Became Afraid of the Big Bad Fed | 5/23/2000 | See Source »

SHILLER It is not reasonable that the risk premium should be zero. You can buy inflation indexed bonds at 4% [risk free]. That's why I am a big advocate of index bonds. It is one of my campaigns...

Author: /time Magazine | Title: Will The Dow Ever Hit 50,000? | 5/22/2000 | See Source »

HASSETT I took a huge loss on my index bonds. I bought them like three or four years ago, and the rate was down like...

Author: /time Magazine | Title: Will The Dow Ever Hit 50,000? | 5/22/2000 | See Source »

HASSETT But what you are saying is that those index bonds are not risky if you hold them for 30 years. Well, that's true for stocks...

Author: /time Magazine | Title: Will The Dow Ever Hit 50,000? | 5/22/2000 | See Source »

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