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Pastimes : FED TALK -- Ignore unavailable to you. Want to Upgrade?

To: Kelvin Taylor who wrote (74)	2/25/2001 9:02:41 PM
From: Kelvin Taylor	Respond to of 94

FED SURPRISE CUT, PART II? Friday's Nasdaq market whipped higher in late trade, up from a deep morning rout, the turnaround driven in part by growing talk of a possible interest-rate cut by the Fed early next week. While rumors of such a move were buzzing in the markets all week, the hum turned into authoritative comment when Wayne Angell, a former Fed governor who is now Bear Stearns chief economist, said ``... we think it highly likely that the Fed will lower the fed funds rate by 50 basis points next week.'' ``If the Fed does not act rapidly to forcefully lower interest rates, it risks undermining the outlook for capital spending and thus the prospects for recovery in the second half of the year,'' Angell said in a report. ``Greenspan is going to be watched very carefully for a direction on policy,'' Johnson said, ``My view is that the next employment report (for February, due March 9) will be so weak, that the Fed may have to act ahead of the next meeting.'' The central bank has so far this lowered interest rates in a surprise cut of 50 basis points on Jan. 3, and again by the same amount at a regularly scheduled FOMC meeting at the end of last month. Complete story: dailynews.yahoo.com