US Fed cuts bank rate to new low

Five half-point rate reductions since Jan. 3 constitute an unprecedented effort by Greenspan's Fed to kick-start an economy that grew in the past three quarters at the slowest pace in five years

BLOOMBERG , WASHINGTON

The decline in manufacturing production may reverse soon. The US Commerce Department reported a gain in new factory orders for March, which was mirrored in the latest survey by the National Association for Purchasing Management.

And inventories, which had grown too large, declined in the first quarter for the first time in almost 10 years. "There's no better excuse for increasing production," said Neal Soss, chief economist at Credit Suisse First Boston Inc in New York.

Auto inventories, in particular, have come back to levels that match demand, Soss said.