Economic indicators and the FOMC meeting seemed irrelevant this week and were virtually ignored as another corporate scandal, this time WorldCom, shook the world. Equity prices sank briefly below even last September. Though corporate malarkey now rules, the strengthening economic recovery should eventually benefit equities.

The FOMC did leave the federal funds rate target unchanged and kept its neutral bias in place. The statement accompanying the announcement indicated that Fed officials have not changed their mind on the state of the economy: the recovery is in place, albeit anemic. After Wednesday's announcement, some economists predicted that the Fed could raise its funds rate target as early as September. But the majority of economists seemed to feel that the rate hike would come later in the year.