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Strategies & Market Trends : January Effect 2003 -- Ignore unavailable to you. Want to Upgrade?

To: Londo who wrote (564)	6/19/2003 3:45:32 AM
From: RockyBalboa	Respond to of 666

Fed Likely to Cut Rates -Washington Post Thursday June 19, 12:49 am ET WASHINGTON (Reuters) - Federal Reserve policymakers, concerned that there is still no sign of a solid pickup in U.S. economic growth, appear certain to cut their target for overnight interest rates next week, The Washington Post reported on Thursday. There only real question seems to be whether policymakers will lower their 1.25 percent target by a quarter-percentage point or by a half-point, according to the newspaper's veteran Fed reporter John Berry. The half-point cut seems to be more likely, Berry said, "as a sort of exclamation point to emphasize that the officials believe this will be the final step that, coupled with the income tax cut that will show up in workers' take-home pay next month, will put the economy on a strong, sustainable growth path." Fed Chairman Alan Greenspan gave the first hint that he was contemplating another rate cut in congressional testimony on May 21. He referred then to such a step as "taking out insurance," Berry reported. "We believe that because in the current environment the cost of taking out insurance against deflation is so low, that we can aggressively attack some of the underlying forces, which are essentially weak demand," Greenspan told Congress. Several other Fed officials have expressed similar views in recent weeks, the Post reported. A rate cut by the central bank next week would be the 13th since January 2001 on the eve of a recession when the rate target was 6.5 percent, the report said.

To: Londo who wrote (564)	6/19/2003 3:45:32 AM
From: RockyBalboa	Respond to of 666

Fed Likely to Cut Rates -Washington Post Thursday June 19, 12:49 am ET WASHINGTON (Reuters) - Federal Reserve policymakers, concerned that there is still no sign of a solid pickup in U.S. economic growth, appear certain to cut their target for overnight interest rates next week, The Washington Post reported on Thursday. There only real question seems to be whether policymakers will lower their 1.25 percent target by a quarter-percentage point or by a half-point, according to the newspaper's veteran Fed reporter John Berry. The half-point cut seems to be more likely, Berry said, "as a sort of exclamation point to emphasize that the officials believe this will be the final step that, coupled with the income tax cut that will show up in workers' take-home pay next month, will put the economy on a strong, sustainable growth path." Fed Chairman Alan Greenspan gave the first hint that he was contemplating another rate cut in congressional testimony on May 21. He referred then to such a step as "taking out insurance," Berry reported. "We believe that because in the current environment the cost of taking out insurance against deflation is so low, that we can aggressively attack some of the underlying forces, which are essentially weak demand," Greenspan told Congress. Several other Fed officials have expressed similar views in recent weeks, the Post reported. A rate cut by the central bank next week would be the 13th since January 2001 on the eve of a recession when the rate target was 6.5 percent, the report said.