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To: 2MAR$ who wrote (85)	6/18/2001 10:55:10 AM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

(REUTERS) UPDATE 1-Fed doesn't have much interest rate leeway-Broaddus HOT SPRINGS, Va., June 18 (Reuters) - The Federal Reserve does not have much room to further boost the economy with monetary policy after aggressively cutting interest rates this year, Richmond Fed President Alfred Broaddus said on Monday. Broaddus said, however, that more rate cuts may be needed. He warned that it is possible the U.S. economy has not hit bottom yet and weakness in the manufacturing sector may spread to other sectors of the economy. His comments largely mirrored remarks he delivered in Washington two weeks ago. Broaddus' comments came a little more than a week before the Fed next meets to discuss interest-rate policy. Analysts widely expect the powerful central bank to cut rates again at the conclusion of a two-day meeting on June 27, but there is some disagreement over how far the Fed will go. The Fed has cut interest rates five times this year by an aggressive half-percentage point each time, bringing the key fed funds rate to 4.0 percent, its lowest level in seven years. According to a poll conducted by Reuters on Friday, 19 out of the 25 primary dealers that deal directly with the Fed in open market operations expect a quarter-point cut next week, while six dealers said they expected a more dramatic half-percentage point cut. Broaddus is not a voting member on the Fed's policymaking committee this year following the usual rotation among regional Fed presidents. ((Washington newsroom, 202-898-8370, fax 202-898-8383, washington.economic.newsroom@reuters.com)) REUTERS * end of story *