Overview

America's Federal Reserve cut interest rates by another quarter-point, to 3.75%. Wall Street, which had been hoping for a sixth half-point cut, was disappointed. The Dow fell by 2% over the week. The past week's economic statistics gave mixed signals. Exports dropped by 2% in both March and April, largely because of a decline in high-tech investment abroad; the merchandise-trade deficit widened to $458 billion in the 12 months to April. However, the Conference Board's index of consumer confidence was higher than expected in June.