I cannot envision a rip-roaring bull market kicking in. The worst has been seen in this bear market. But the Fed warned there was still reason to worry. Consumers may not have cut back spending much, but companies have reduced investment as first quarter profits plummeted. The economy grew at an annual rate of just 1 percent in the final three months of 2000, the weakest performance in more than five years.
Many economists believe the economy continued to lose altitude in the recently-ended first quarter.
Some analysts project that economic growth stalled during the January-March quarter and others say it may actually have slipped into reverse. The last time the Fed changed rates between scheduled meetings of its policymaking Federal Open Market Committee was on January 3, one of three half-point cuts this year. The others were at scheduled meetings on January 31 and March 20. The Fed's next scheduled meeting is May 15, where it could cut rates again. MMI Viacom Internet Services Inc. All Rights Reserved.