Fed's Minehan sees encouraging signs of spending rebound in H2

BOSTON (AFX) - Recent economic data is "somewhat encouraging" that consumer spending, and the economy, will rebound in the second half of the year, according to Cathy Minehan, the president of the Boston Federal Reserve Bank.	    Noting that the Fed has cut short-term interest rates by 150 basis points this year, Minehan said "this will likely help shore up confidence, providing the foundation for a rebound in spending, particularly in the second half of the year."	    "Recent signs are somewhat encouraging here. The latest data show that consumers remain willing to purchase big-ticket items, including houses and automobiles, and that consumer spending in total for the first quarter likely will be a bit stronger than that of the last quarter of 2000," Minehan said in remarks prepared for delivery to the New England Pension Consultants annual meeting.	    Minehan is a voting member this year of the Federal Open Market Committee, which sets Fed interest rate policy.	    She said the "path of recovery is still shrouded in uncertainty."	    Although downside risks of a greater slowdown remain, "I believe the more probable outcome is more optimistic."	    "I see consumers cautious but relatively undaunted by the stock market, and that gradually consumer strength feeds back to the economy as a whole as inventory overhangs unwind and businesses begin spending on technology and other investments again."	    "Thus I continue to believe the second half of the year will see improvement, with growth for the year averaging around 2 percent."	    "Whatever happens, of course, it goes without saying that vigilance on the part of the Federal Reserve is necessary," she said.	    Containing inflation, "while always an issue, is not a pressing concern," she added. 

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