WEDNESDAY, March 20

RELEASED TODAY: Respirators had been used by employees in about 10 percent
of the private industry workplaces surveyed in late 2001. In nearly half of
these 619,400 establishments where respirators were used, they were used by
employees on a voluntary basis only, and, in about 12 percent, they were
used only when required because of emergencies. These data are from a
special survey conducted by the Bureau of Labor Statistics for the National
Institute for Occupational Safety and Health, Centers for Disease Control
and Prevention.

The U.S. trade deficit expanded sharply in January, suggesting the economy
hasn't strengthened quite as much as expected in the first quarter. The
seasonally adjusted trade deficit for January swelled 15.4% to $28.5 billion
from a revised $24.7 billion in December, the Commerce Department said. The
trade gap in December, however, was surprisingly narrow, because imports had
sharply contracted, an aberration that reversed itself in January ( The Wall
Street Journal, page A2; and The New York Times, page C3).

Despite signs of an economic rebound, the Labor Department reports that
local job markets remain soft. Roughly 80% of 331 metropolitan areas posted
January jobless rates higher than they were during the same period a year
earlier. Among the 50 largest metro areas in the nation, Portland, Ore., saw
the highest rate at 8.6%, while Orange County, Calif., had the lowest at
3.8%. San Jose, Calif., the center of tech-heavy Silicon Valley, turned in
the sharpest year-over-year gain with unemployment soaring to 7.5% from 1.7%
( Robert Gavin, The Wall Street Journal, page B14).

The Federal Reserve signaled to investors, businesses and consumers today
that they should prepare for higher interest rates this year if the economy
continues its speedy recovery. At a meeting of the policy-setting Federal
Open Market Committee, the central bank voted to hold rates steady, as it
did at its meeting in January. But the Fed laid the groundwork to begin
reversing some of the 11 rate cuts it carried out last year as the economy
sank into recession ( The New York Times, page C1).

Federal Reserve officials left their interest rate target unchanged at a
meeting yesterday and signaled that they may be in no rush to raise rates as
long as the economic outlook remains uncertain. The central bank's top
policymaking group, the Federal Open Market Committee, said the economy "is
expanding at a significant pace" but then noted that the rate of growth
later this year "is still uncertain." ( The Washington Post, page E1).

DUE OUT TOMORROW: Consumer Price Index--February 2002; and Real
Earnings--February 2002

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