graphic
News > Economy
The Greenspan approach
August 21, 2001: 9:02 a.m. ET

Fed watchers play the guessing game on a probable seventh rate cut
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - All eyes were focused on Federal Reserve Chairman Alan Greenspan's leather briefcase – clutched tightly to his side – Tuesday morning as he strolled into the building where the Federal Open Market Committee is widely expected to announce a seventh interest rate cut this year later today.

graphic   VIDEO  
Real 28K 80K
Windows Media 28K 80K
According to some Wall Street wags who use the "briefcase barometer" to gauge the depth of a cut ahead of time, a thick briefcase means the Fed will cut rates, because the chairman has to bring a lot of homework to the meeting. Conversely, a thin one signals no Fed action.

graphic  
Unlike the usual debates that have preceded earlier rate cuts, Fed watchers appear to be more certain this time around that the Fed will announce at least a 25 basis point cut. graphic





graphic