Federal Reserve chairman Mr Alan Greenspan is set to give an update of his views on the ailing US economy today with markets hungry for some hint more rate cuts are imminent.
News he would make alterations to his testimony generated feverish speculation in financial markets eager for signs that the Fed will cut rates soon. But several analysts said they do not expect much of a change in his tone.
"I wouldn't expect a lot of change in what he says," said Mr Lyle Gramley, consulting economist for the Mortgage Bankers Association and a former Fed governor.
Mr Gramley said data released since February 13th, when Mr Greenspan delivered part one of his semiannual monetary testimony to the Senate, did not warrant a major overhaul of his position.
But some analysts thought a raft of weak numbers released yesterday did argue for a new message - and perhaps even a near-term interest-rate cut.
The index measuring Americans' confidence in the economy slumped in February to its lowest level in more than four-and-a-half years.
Federal Reserve vice-chairman Mr Roger Ferguson reinforced the slowdown message and said uncertainty remains over the economic outlook.
"Recent data on the US economy confirm that a significant deceleration in activity has occurred," Mr Ferguson said.
White House economic adviser Mr Lawrence Lindsey said on CNBC television he thought the economy was "softening quite dramatically."
Touting the $1.6 trillion tax package President Bush is trying to push through Congress, he said the best thing for Americans was to give them some cash through tax cuts.
Some analysts were sceptical anything short of a signal of an imminent rate cut in today's testimony would soothe the stock market. It suffered a violent bout of selling last week that sent the Nasdaq to a two-year low.