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CNN Live Event/Special

America Recovers: Fed Expected To Cut Rates Today

Aired October 02, 2001 - 06:44   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: we're going to have a check of the morning's business news with David Haffenreffer, who's checking in right now from New York. David?

DAVID HAFFENREFFER, CNN FINANCIAL NEWS: Hi, Carol, hi, Leon.

Yes, the Federal Reserve is expected to be cutting interest rates today by either a quarter or a half percentage point. The move would bring the Fed funds rate below 3 percent for the first time since 1963. That decision comes down at about 2:15 p.m. Eastern time this afternoon.

In the meantime, stock index futures are pointing to a weak open for us today, and a warning from Compaq Computer certainly not helping matters at all. The computer maker says it expects to miss third quarter revenue targets by as much as a billion dollars, and will now report a loss.

Yesterday, stocks fell despite the prospects of more rate cuts as investors focused more on the gloomy profit outlook. The Dow industrials lost 10 points and the Nasdaq slipped 18 points, or nearly 1.5 percent.

Well, air passenger traffic picked up just a bit over the weekend, but U.S. airlines are still flying with a 40 to 50 percent of their seats empty. To try to boost sales, United Airlines says it's cutting business fares through the end of the year by 25 to 50 percent. Other carriers are expected to follow suit.

That is a quick look at business news. Continuing coverage of America's new war will be right back after this short break.

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