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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stomper who wrote (32076)	2/28/2001 10:32:21 AM
From: Nick	Respond to of 65232

Greenspan hints more cuts Federal Reserve Chairman signals job of spurring economy not over yet February 28, 2001: 9:42 a.m. ET WASHINGTON (Reuters) - Federal Reserve Chairman Alan Greenspan said Wednesday that even after the U.S. central bank's two January rate cuts the economy still is at risk of a below-par performance, a signal more rate cuts are coming. His remarks in an updated version of key monetary testimony to Congress sent the clearest indication yet that the Fed intends to follow through on the rate cuts of Jan. 3 and Jan. 31 -- totaling a full percentage point -- with more cuts, but he did not give any hints about the timing of possible moves. "The economy appears to be on a track well below the productivity-enhanced rate of growth of its potential and, even after the policy actions we took in January, the risks continue skewed toward the economy's remaining on a path inconsistent with satisfactory economic performance," Greenspan said in prepared remarks to the House Financial Services Committee. Even as he highlighted the economic risks, however, Greenspan offered some soothing words for investors, businesspeople and consumers who have grown concerned lately about the threat of a recession. He said the abrupt economic slowing may prove "limited."

To: stomper who wrote (32076)	2/28/2001 11:21:09 AM
From: SecularBull	Respond to of 65232

I suspect reality is in the middle. AG gave the impression that there was more to go to the downside on rates, but that such movement is not immediately required given the sustained decent levels (in his mind) of consumer confidence (given that he believes that consumers continue to support long-term purchases). The economy is not reeling at high growth rates, but I seriously doubt that a recession is as much a reality as it is a perception (a perception that seems to be centered around those invested in NASDAQ stocks). Growth estimates are trimmed for tech, but on average, how many tech companies are experiencing negative growth? LoF