5 April 2001, 11:45  U.S. GDP is "barely growing"

After several Fed speakers including Alan Greenspan failed to move the U.S. credit markets Wednesday, Atlanta Fed President Jack Guynn stepped in, commenting that U.S. GDP is "barely growing," prompting a short-end rally. Guynn added he thought there was plenty of room to cut rates further. Indeed, while Guynn was speaking, all stock indices fell into the red -- temporarily for the Dow -- and the short end of the curve got a further bounce. Additionally, the long end of the market got hurt amid talk of selling of principal strips and off-the-run bonds by a West Coast money manager. There was little to alter currency sentiment at the close on Wednesday, traders said, with scant attention paid to Greenspan's comments earlier, or sagging equity markets. Traders had hoped the Fed chairman might provide some insight into the possibility of an inter-meeting ease, but they were disappointed as Greenspan stuck to his designated subject matter: trade.

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