The Tremont Quarterly Review & Outlook - Third Quarter 2001
- Topics:
- Commercial Lending
- Tags:
- Finance,
- Stability,
- Software,
- Sales Strategy,
- Sales Force Management,
- Sales,
- Office Suites,
- Microsoft Outlook,
- Microsoft Office,
- Investment,
- ...
- Source:
- Tremont Capital Management
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Overview: Aggregate measures of production, employment, and business spending continued to be weak in August. Consumer spending, however, moved higher that month and appeared to be reasonably well maintained in the first part of September. Industry analysts suggest that motor vehicle sales were running close to August levels, and chain store sales were only modestly lower. New orders for nondefense capital goods stabilized in August. Moreover, the dramatic rate of decline in profits was slowing. To be sure, the signs were tentative but overall, encouraging. Before September 11, the Federal Reserve had supplied substantial monetary stimulus to the economy. In the statement last April, the FOMC was urged to maintain its focus on long-term price stability and avoid the pressures to fine-tune the economy. Fine-tuning is beyond the capability of monetary policy. Even before the events of September 11, the easing had resulted in growth rates of the monetary aggregates well in excess of that consistent with long-term price stability. The growth rates of most [monetary] aggregates were at their highest in over a decade. It is important that the liquidity be drained from the system after the threats to the system have passed.
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Format: PDF | Size: 74KB | Date: Jul 2001 | Pages: 4
