The Overall Economy

The US economy has been in recession since the third quarter of 2000. Plagued by the bursting stock market bubble, mounting unemployment across many sectors, widespread corporate scandals and the profound impact of the September 11 terrorist attacks, the US economy keeps resisting the opportunity to gain momentum. As a result, the Fed's second-highest priority of fostering economic growth has been slowly gaining ground as Mr. Greenspan declares victory in the war on inflation. This will likely result in further reductions in key short-term interest rates. But at the very least, the Fed will not raise rates anytime into the foreseeable future.