The U.S. economy "is clearly undergoing a stock adjustment" to reconcile the supply and demand of capital goods, Federal Reserve Vice Chairman Roger Ferguson said on Feb 14 at a speech at Vanderbilt University. Ferguson said it is unclear how long the adjustment will last, or what effect this will have on long-term investment in the high-technology sector. But he said that recent developments show that "New Economy" businesses must not assume they are protected from old-economy problems.

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