But businesses are moving fast to adjust levels of production. And final demand should be supported by the lower interest rates put in place by the financial markets and the Federal Reserve. Consequently, I would expect a period of notable weakness early in 2001, followed by a pickup in activity.
Despite the sharp correction in “new economy” stock prices, I believe that the underlying technical advances I discussed earlier in this talk will continue and will provide considerable support over time for business and consumer spending. In its most recent announcement, the FOMC indicated that risks remain weighted toward economic weakness.