[The Raven]

>>For the past seven years or so, Greenspan has ignored the market completely

No - not that market.....The fed is reacting to the interest rate market.....if they did nothing - the market rate would be too far away from their prime rate...so they adjust it. I'll see if I can find the article explaining that and post it here.

[Moonman62]

I didn't mean that market. Greenspan has ignored the yield curve, market prices for commodities, and the consumer price index.

Before 1995/96 he did a fairly good job of using a price rule for interest rates.

[phothus]

He had an article on how the market moves and forces the Fed to follow.. sometime in early 2001, I think... it was published in the WSJ also... not sure if I have a copy, though...