CSFB slashes US growth forecast

By Robert Stock The Federal Reserve is signalling its willingness to prevent a further erosion in confidence, according to Credit Suisse First Boston (CSFB), but the risk that there will be near-zero growth in the first quarter of 2001 is rising. Neal Soss, an analyst at CSFB, said the market had already almost fully priced in another 50-basis-point rate reduction for the 3031 January FOMC meeting. Soss said: "By the time we sit down to our 4 July barbecues, much of the 175-basis-point cycle of monetary tightening from 1999 and 2000 should be reversed. Indeed, if the data continues to de...