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DG CAPITAL ADVISORS CLIENT MEMORANDA
Flash: Greenspan Speaks
November 20, 2000
David Gitlitz
Alan Greenspan is
scheduled to
speak this evening under the general heading of "technology and banking"
to a gathering of the Women in Housing and Finance group in
Washington, D.C. This will be Greenspan's first public appearance since the
FOMC last week acknowledged for the first time that the economic
expansion is slowing to a pace "below... its potential to produce." If, as
seems increasingly likely, last week's statement was a prelude to the FOMC
dropping its tightening bias at next month's meeting, Greenspan tonight
could well drop a hint or two about his policy intentions. Over the years,
it has become customary for Greenspan to prep the markets for forthcoming
changes in policy direction so that by the time the FOMC sanctions the move
it is largely a fait accompli. With the next FOMC meeting scheduled for
December 19, this would seem to be an opportune moment for Greenspan to
begin that process. |