Was Greenspan Out To Break A Speculative Fever?

By all appearances, the Federal Reserve and the Clinton Administration were caught as badly off-guard by the recent slide in the markets as the investment pros who got burned. But that's not the way it happened, the central bank and the Clintonites now insist. When the Fed--with the Administration's quiet acquiescence--began to nudge interest rates up in February, the central bank expected the stock market to fall. And policymakers figured that just might be a good thing.

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