By Evelina M. Tainer, Chief Economist, Econoday
8/17/01

Fed governors and Federal Reserve district bank presidents, along with their entourage of economists, will be meeting on Tuesday, Aug. 21 to determine the direction of monetary policy. Since they last met more than a month ago, economic conditions have not changed all that much. Industrial production is still headed down, retail sales are weak, and housing activity remains the major source of economic strength. Inflation news is tame. All in all, this probably sets the stage for another 25 basis point cut in the federal funds rate target bringing it down to 3.50 percent.