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Fed Cuts Rates As 1.4% Rise In GDP All But Ends Hope For 'Soft Landing'.(A)(Company In The News)
Byline: Donald H. Gold
Investor's Business Daily
The Federal Reserve slashed interest rates another half-point Wednesday following a GDP report that blows apart hopes for a soft landing.
And more rate cuts may be coming, as the central bank left in place its bias toward easier money.
The economy finished 2000 at its slowest pace in 5 1/2 years. Gross domestic product, the total value of all goods and services produced in the U.S., rose at an annual rate of 1.4% in t
he fourth quarter, the Commerce Department said.
That's down from the third quarter's 2.2% and the worst showing since the second quarter of 1995. It was also worse than the 1.9% rate looked for by analysts.
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