By Evelina M. Tainer, Chief Economist, Econoday
7/27/01

This week's testimony by Alan Greenspan before the Senate Banking Committee didn't reveal any choice new morsels of the Fed chairman's thought process. He reiterated last week's comments that the Fed stood ready to reduce rates further should economic conditions warrant. Market players took this to mean that the Fed will probably reduce the funds rate target by 25 basis points at the August FOMC meeting. Economic indicators continue to reveal a weak economy and corporate earnings continue to spook equity investors.