By Evelina M. Tainer, Chief Economist, Econoday
2/1/02

The FOMC voted against another reduction in the federal funds rate target this week. They maintained that risks are weighted towards economic weakness but said signs of firming economic activity are now becoming more evident. For the most part, economic indicators reported during the past week did show marked improvement. Even though nonfarm payrolls posted another decline during January, the size of the monthly declines is diminishing. On the whole, economic indicators are trending towards more friendly economic news.