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To: Jerry Olson who wrote (1817)	10/18/2002 2:43:31 PM
From: jtech	Respond to of 1854

DJ Federal Reserve Will Make Interest Rate Cut - Economists 10/18/2002 Dow Jones News Services (Copyright © 2002 Dow Jones & Company, Inc.) NEW YORK (Dow Jones)--The purchasing manager's index and employment numbers, which come out before the Federal Reserve meets Nov. 1, will be enough to convince the Fed to make a quarter percent interest rate cut, said Stuart Hoffman, chief economist PNC Financial Services Group (PNC), in an interview with CNBC Friday. In the same interview, Richard Rippe, chief economist for Prudential Financial Inc. (PRU), agreed that the Federal Reserve would make a cut after the reports. Hoffman said if unemployment remains up and the purchasing manager's index goes down, it will be enough ammunition for the Federal Reserve to make the cut. Hoffman added the economy is a "mixed picture." The mixed indicators for the week show a "two steps forward, one step back" movement for the market. He said the consumer price index numbers that came out earlier Friday were "benign." He added the higher trade deficit would drag on the U.S. gross domestic product. Rippe also agreed the housing markets have been the strongest sector by far, although he sees the growth slowing in the fourth quarter with the rising mortgage interest rates. The housing boom will continue to drive consumer spending, he said. "I think the economy is making progress and not facing a double-dip recession," Rippe said. Despite general concerns of deflation, the consumer price index numbers indicate minor inflation, he said. -Roger Cheng; Dow Jones Newswires; 201-938-5393; roger.cheng@dowjones.com (END) DOW JONES NEWS 10-18-02 02:41 PM