America's bias.(Federal Reserve )(responded to strong growth by switching its "bias" from neutral to an inclination to raise rates )(Brief Article)

Economist (US), The, October, 1999

The Federal Reserve left American interest rates unchanged but responded to strong growth by switching its "bias" from neutral to an inclination to raise rates in future. Some apparent justification for the shift arrived almost at once, as factory orders increased unexpectedly strongly in August by 1.3%.

The strength of the yen does not appear to have damaged Japanese business confidence, according to the tankan quarterly survey of over 9,000 companies. However, in all sectors surveyed, more companies were pessimistic than optimistic about the future suggesting that the recovery is still tentative.

Manufacturing orders in Germany jumped by 5.1% in August compared with July, signalling the economy is entering a strong recovery.