WASHINGTON (AP) — President George W. Bush described former Liberian President Charles Taylor’s departure into exile as “an important step” but gave no hint whether it moved him closer todeploying more U.S. troops to the war-ravaged country.
Three U.S. warships appeared off Liberia’s coast Monday but Pentagon officials said there was no immediate plan to send more than the seven Marines already ashore to assist with peacekeeping or humanitarian relief.
Bush thanked the leaders of several Liberian neighbors, including Nigeria, which took Taylor in, South Africa and Mozambique. “Their continued leadership will be needed in the weeks and months ahead,lin Powell said he does not expect any large commitment of U.S. forces in Liberia if a cease-fire holds up.
He said some capabilities of the Marine expeditionary force off the coast of Liberia may be used to get the port reopened and desperately needed food and other aid flowing into the embattled West African nation.
He said the commander of the force, Army Maj. Gen. Thomas Turner, would discuss these issues Tuesday with U.N. officials and representatives of non-governmental aid organizati ROBERT STOVALL, CLEMENTE CAPITAL: We don`t expect too much from the Federal Open Market Committee tomorrow. But do you think that the market will react just the same, just move anyway?
MEADE: You know, sir, I think what`s more important is the rhetoric. I don`t think anybody, a bond trader or the equity markets themselves, are expecting anything but some kind of bias towards let`s call it a pension, a thought process. So I think as long as the Fed still remains extremely attentive to growth needs and less so to the inflationary backdrop, I think it will show that Greenspan is extremely dedicated just like the government is, to actually inciting some sort of growth in the economy and that would be a positive.
ROMANS: Bill, it`s interesting, because we`ve been watching the stock market watch the ten-year note so carefully. Are you expecting that kind of relationship to continue? Every time you see rates sort of back off a little bit, you start to see a little more enthusiasm in stocks and vice versa?
MEADE: Yes. It`s been sort of an interesting inverse relationship. It`s almost counterintuitive, because the higher that rates go, obviously the better the economic backdrop feels which in essence should be better for growth. So we`ve got this interesting tug of war going on between–you`re right. When the 10-year gets above 4 and gets closer to 4 1/2, it starts to act as almost a throttle in economic growth when in fact it should be a reflection of how things are improving. So I think what it comes down to guys is the bond market will do what it feels as long as it stays below (UNINTELLIGIBLE) 5 percent on the 10-year, which I think in essence, as long as you get good reported numbers, I think that`s what really counts. It`s earnings. It`s all about earnings growth and earnings leverage.
STOVALL: The bond market has been more volatile than the stock market in recent weeks. Do you think that might continue? Do you see the new participants or more participants in the bond market than you say, three months ago?
MEADE: That`s a very good point sir. Imagine if were you a hedge fund actually playing the bond market, let`s say from three weeks ago when the 10-year was in the low 3s, you`re right. You got absolutely killed making that kind of bet. So I think it`s almost safer at this point in time to not try and predict what is the inflexion of the 10-year. But I think if you`re really thinking about it, I think at this point in time, the bond market is more of a buy than it`s been any time in the past three or four months. And the equity market in essence, as it`s reflected in that (UNINTELLIGIBLE) 10-year, is probably going to see some incremental improvement. But again, given the equity gains that we`ve seen so far as (UNINTELLIGIBLE) or calendar year to date, we`ve got to see some earnings leverage and we`ll get that in some cases.
ROMANS: Want to ask you about leadership in this market. The last couple of weeks, the Nasdaq has lagged the blue chips and you`ve seen money going into things like trucks and pipelines and things that retailers, for example, things that sort of portend economic growth. You`ve seen money coming out of some of those high flyers that have led the market for the first part of the year? What do you make of that?
MEADE: I think it`s a good point and its further proof as to the 10-year, go from the 3 to the 4s. That in essence is a good thing to do, to be (UNINTELLIGIBLE). Now it`s almost counterintuitive in a sort of a way because it wasn`t so long ago guys in the consumer names, they were so worried about what I would call sort of jobless growth, when we actually got the uptick in the unemployment rate, things were kind of sloppy but in essence, consumer spending, never doubt the American consumer. The numbers have come through and I think that will be further proof this week with some of the specialty retailers that in fact the American consumer is alive and well and spending.
ROMANS: All right, Bill Meade, RBC Capital Markets. Thanks for dropping by today. Have a great week.
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