It was a slow week for economic news. The little news we did have was pretty friendly and showed that inflation is indeed not a problem in the near term. Without the threat of inflation, Fed officials have more leeway in determining interest rate policy. Should economic conditions warrant, the Fed will be able to reduce the federal funds rate target from its current level of 1.75 percent. Indeed, Fed chairman Alan Greenspan implied as much in his remarks to the Bay Area Council Conference Friday.