Federal Reserve Likely to Focus on Consumers with Interest Rate Decision.

Publication: Daily News (New York, New York) (via Knight-Ridder/Tribune Business News)

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COPYRIGHT 2001 Daily News

Byline: David Andelman

May 14--It all comes down to shoppers.

With three-quarters of the economy depending on consumers, Alan Greenspan and the Fed convenes tomorrow in Washington with at least one central mission -- keeping them spending.

And if it takes yet another half percentage point cut in short-term interest rates, that's just what Greenspan & Co. seems most likely to supply, many economists said.

"The consumer is the key to the near-term economic outlook," said David Jones, chief economist at Aubrey G. Lanston securities. "The key is to keep the consumer's confidence from crumbling, and from pulling back his spending."

Recent economic stats...

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