In the first part of this segment, Richard discusses businesses being reluctant to invest in the economy. Richard and Jim talk about consumer spending in the U.S. compared to Japan. Elinor and Jim talk about consumer spending and deflation.

Another FED Watch show with our regular guest during this hour, Elinor, and another member of our Brain Trust, Don. The discussion revolves around national and international economic issues, and of course, what the FED will do with regard to interest rates. Even though the FED action discussed is not news by the time you hear this Archive, the value of the general discussion Jim has as he interviews these two outstanding economists is timeless.

Elinor, who is a regular guest with Jim on the day the FED's Open Market Committee meets, helps Jim interview Paula about how the FED works and how small business can influence FED policies.