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Fed Sees Inflation Tamed,
Slowdown Possibly Over
1Federal Reserve Chairman Alan Greenspan said inflation is currently "not a significant problem." But he stressed that the Fed is keeping a close watch on prices. He was heartened by signs U.S. gasoline prices could head lower in the next few months. Dallas Fed President Robert McTeer said the worst of the U.S. slowdown may be over, but said it's a "close call" whether the economy grows orshrinks this quarter. He said a recession wasn't likely but possible, and thattax and interest-rate cuts should help avoid it.
Layoff Announcements Fall,
But Job Market Still Weak
2Corporations announced 80,140 layoffs in May after hitting 165,564, an eight-year high, in April, said Challenger, Gray & Christmas. The outplacement firm said tech firms announced 16% of the 652,510 layoffs so far this year. Thesector's decline, which has raised the jobless rate, will soon affect consumerconfidence and retail sales, CEO John Challenger said. The jobless rate has been trending up since late last year.
GOP Ready For Historic Ax