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.
© 1999-2024 Forex EuroClub
All rights reserved