Ferguson throws cold water on cut
Puzzler: Spending strong despite drop in confidence
By Rex Nutting, CBS.MarketWatch.com
Last Update: 2:21 PM ET Feb 27, 2001
NEW YORK (CBS.MW) - The drop in consumer confidence isn't conclusive evidence that the economy is weakening further, the No. 2 member of the Federal Reserve Board said Tuesday in comments that are likely to dampen speculation that policy-makers will cut interest rates before their March meeting.
"A somewhat puzzling feature of the recent period has been that, despite the sharp weakening in sentiment, household spending appears thus far to have held up well," Vice Chairman Roger Ferguson said. "How these apparently conflicting signals will be resolved going forward is not at all apparent from today's vantage point, and will bear close scrutiny." Read his speech.
Ferguson's comments imply that the falling consumer confidence numbers alone aren't enough evidence to justify voting for lower rates right now.
Puzzler: Spending strong despite drop in confidence
By Rex Nutting, CBS.MarketWatch.com
Last Update: 2:21 PM ET Feb 27, 2001
NEW YORK (CBS.MW) - The drop in consumer confidence isn't conclusive evidence that the economy is weakening further, the No. 2 member of the Federal Reserve Board said Tuesday in comments that are likely to dampen speculation that policy-makers will cut interest rates before their March meeting.
"A somewhat puzzling feature of the recent period has been that, despite the sharp weakening in sentiment, household spending appears thus far to have held up well," Vice Chairman Roger Ferguson said. "How these apparently conflicting signals will be resolved going forward is not at all apparent from today's vantage point, and will bear close scrutiny." Read his speech.
Ferguson's comments imply that the falling consumer confidence numbers alone aren't enough evidence to justify voting for lower rates right now.
