DEBORAH MARCHINI, CNN ANCHOR: The European markets are greeting the Federal Reserve Board's rate cut with a resounding raspberry. Richard Lambert, editor of the "Financial Times," joins us, live from London, to give us some perspective on why -- Richard.</s>RICHARD LAMBERT, EDITOR, "FINANCIAL TIMES": Well, we're more interested in talking about inflation, here in Europe, this morning, than about what happened in the United States yesterday, which had been fully discounted. We've got, this morning, the Bank of England's closely watched quarterly inflation report, which shows that the risk to growth and inflation are on the downside. So there's room for rate cuts here in the United Kingdom. In euro zone, though, there's the euro zone inflation indicators, just coming out as we speak, and they show a rise, I think, of 2.9 percent for last month, which is up not 0.3 percent on the previous month. There is some energy and food in there, but it looks as though the core rate of inflation is rising a little in Continental Europe, which means the scope for another cut by the European Central Bank is limited. And we think too that, in the United States, the scope for further action by the Fed is limited. The scope for what monetary policy can do is being restrained because, we think, inflation is beginning to become an issue in the United States as well. So that's what we're talking about.</s>MARCHINI: Thanks a lot, Richard Lambert of the "Financial Times." TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
'Financial Times': Richard Lambert Discusses European Coolness to Fed Interest Rate Cut