1 Signs of a slowing economy are increasing pressure on the Federal Reserve to cut short-term interest rates, but it isn't clear whether the central bank will do so.
2 A survey by the Fed's 12 district banks shows economic growth has been sluggish in recent weeks, while upward pressures on prices have moderated. 'The economy is clearly slowing,' says Robert Black, president of the Richmond Federal Reserve Bank.
3 'If you look at the third quarter as posting roughly 2.5% growth, I do see some slowing in the fourth quarter,' agrees Kansas City Fed President Roger Guffey.
4 Nevertheless, both Mr. Guffey and Mr. Black say the slowdown so far is no cause for concern. 'We're coming closer to achieving the stated objective of slowing the economy to a point where hopefully some downward trend in prices will occur,' said Mr. Guffey.
5 Bush administration officials are looking to the Fed to bring down rates, and financial markets seem to be expecting easier credit as well. 'I think the market had been expecting the Fed to ease sooner and a little more than it has to date,' said Robert Johnson, vice president of global markets for Bankers Trust Co.
6 The Fed cut the key federal funds interest rate by about 0.25 percentage point to 8.75% after the Oct. 13 stock market plunge, but has shown no sign of movement since.
7 The report from the Fed found that manufacturing, in particular, has been weak in recent weeks.
8 The Philadelphia Fed, for instance, reported that manufacturing activity 'continues to decline' for the fourth month in a row.
9 And in the Chicago district, the report said, 'a manufacturer of capital goods noted slower orders for some types, including defense equipment, petroleum equipment, food packaging machinery and material handling equipment.' Retail sales also were reported slow in most districts, particularly 'for discretionary, big-ticket items such as furniture, home appliances and consumer electronics.' And construction also was described as slow in most areas.
10 Despite the economic slowdown, there are few clear signs that growth is coming to a halt.
11 As a result, Fed officials may be divided over whether to ease credit.
12 Several Fed governors in Washington have been pushing for easier credit; but many of the regional Fed presidents have been resisting such a move.
13 Mr. Black said he is 'pleased' with the economy's recent performance, and doesn't see 'a lot of excesses out there that would tilt us into recession.'
14 'There is always a chance of recession,' added Mr. Guffey, 'but if you ask me to put a percentage on it, I would think it's well below a 50% chance.'

Nevertheless , both Mr . Guffey and Mr . Black say the slowdown so far is no cause for concern . " We ' re coming closer to achieving the stated objective of slowing the economy to a point where hopefully some downward trend in prices will occur , " said Mr . Guffey .
Mr . Guffey and Mr . Black
who are these men?