By Evelina M. Tainer, Chief Economist, Econoday
September 27, 2002

The FOMC decided to leave rates unchanged when they met this week, but dissention in the ranks perhaps signals a potential rate cut in coming months. Economic data remains mixed. The major economic force remains in the housing market, but manufacturing trends may start to improve based on the latest durable goods report. Labor market conditions remain less than stellar, and consumer confidence has not yet begun to improve. On the whole, uncertainty over a possible war with Iraq is likely stalling business plans to increase capital expenditures.