The report sparked some speculation that the Federal Reserve might move soon to lower short-term interest rates.

The dollar has been falling in recent days on speculation that the Federal Reserve will move to lower interest rates further to stimulate economic growth.

The surge showed optimism about the outcome of the war and moves to lower interest rates.

Two weeks after that meeting, the Fed moved to lower interest rates.

Bond prices, which move inversely to interest rates, tumbled on the news.

"Above 8 percent, it sent a message to the market that the Fed may not be so accommodating" in moving to lower interest rates, he said.

Most European governments and their central banks are likely to move quickly to lower interest rates in the hope of reviving their economies.

Bond prices move inversely to interest rates, and the longer a bond's term, the bigger the move.

Mr. Greenspan, according to some of those present, gave no indication of any intention to move to lower interest rates.

The world's financial markets have calmed down since the Federal Reserve first moved to lower interest rates seven weeks ago.