U.S. Secretary of Energy's Speech

The Energy Secretary's speech can be found at
http://www.energy.gov/HQDocs/speeches/2001/marss/energy_speech_v.html

Also the Fed cut 50 bps.

Federal Reserve Board

Release Date: March 20, 2001

For immediate release

The Federal Open Market Committee at its meeting today decided to lower its
target for the federal funds rate by 50 basis points to 5 percent. In a
related action, the Board of Governors approved a 50 basis point reduction in
the discount rate to 4-1/2 percent.
Persistent pressures on profit margins are restraining investment spending
and, through declines in equity wealth, consumption. The associated backup in
inventories has induced a rapid response in manufacturing output and, with
spending having firmed a bit since last year, inventory adjustment appears to
be well underway.
Although current developments do not appear to have materially diminished the
prospects for long-term growth in productivity, excess productive capacity
has emerged recently. The possibility that this excess could continue for
some time and the potential for weakness in global economic conditions
suggest substantial risks that demand and production could remain soft. In
these circumstances, when the economic situation could be evolving rapidly,
the Federal Reserve will need to monitor developments closely.
The Committee continues to believe that against the background of its
long-run goals of price stability and sustainable economic growth and of the
information currently available, the risks are weighted mainly toward
conditions that may generate economic weakness in the foreseeable future.
In taking the discount rate action, the Federal Reserve Board approved
requests submitted by the Boards of Directors of all twelve Reserve Banks.

Regards,

Maureen