Fed intent on stimulating US economy

The US economy slowed dramatically in the fourth quarter of 2000 and figures released since indicate the weakness has continued into 2001. Despite the interest rate cuts by the Federal Reserve markets have fallen back because of renewed concerns over the impact of the slowdown on corporate earnings. While there are still profit warnings to be found, particularly in the US, the combined influences of monetary and fiscal easing in the major economies will ultimately be positive for equity markets. The Fed in particular appears prepared to do whatever is necessary to prevent the US economy...