<font color=green>The Post--John M. Berry: "Basis Points"
washingtonpost.com
-------------------------------------------------------------------------------------------------------------
Rearranged for emphasis & ease of reading.
>>>BASIS POINTS
By Basis Points
Sunday, January 28, 2001 ; Page H03
Federal Reserve Chairman Alan Greenspan said Thursday that U.S. economic growth has gone to zero after only a "slightly positive" fourth quarter.
That pretty well confirmed the now-widespread market expectation that Fed officials will cut their target for overnight interest rates to 5.5 percent from 6 percent when they meet Tuesday and Wednesday.
Until Greenspan's testimony before the Senate Budget Committee, some analysts thought the cut might be only 25 basis points.
Greenspan said whether flat economic growth will worsen will depend on whether something breaches consumer confidence, which hasn't happened yet.
It could take three months to be sure which course the economy will follow.
In addition to the Fed meeting this week, the Commerce Department's advance estimate of fourth-quarter growth will be released Wednesday, and the Labor Department's report on January employment and unemployment on Friday.
Tomorrow, Treasury will sell $13 billion in three-month bills and $11 billion in six-month bills, which yielded 5.16 percent and 5.03 percent, respectively, in when-issued trading Friday.
Also, on Wednesday, Treasury will announce details of its quarterly re-funding to be conducted early next month, including whether it will continue to sell one-year bills.
-- John M. Berry
© 2001 The Washington Post <<< |
