By Evelina M. Tainer, Chief Economist, Econoday
5/11/01

Little economic news was reported during the week, but what there was generally pointed in the same direction: economic conditions remain sluggish. Productivity figures were weaker than anyone's worst predictions; retail sales - despite splashy headlines -- were soggy; and inflation still isn't a problem. Weekly jobless claims fell back below 400,000, but it will take more than one week's numbers to determine if a new trend has been established. Market players really didn't know what to make of all this - especially in relationship to the Fed. Forecasts for the May 15 meeting range from no action to as much as a 75 basis point rate cut.