By Evelina M. Tainer, Chief Economist, Econoday
April 5, 2002

This week's set of economic indicators turned out to be slightly below expectations. Oddly enough, many market players viewed this in a favorable light because it suggests that the Fed is not likely to raise its federal funds rate target at the May 7 meeting. Equity investors feel that an early rate hike would derail a corporate profits recovery, and bond investors simply don't like a rising rate environment. Actually, the recovery is probably in line with Fed's and most economists' expectations - moderate.