FYI
Thursday December 11, 2:44 pm Eastern Time
Economist sees Fed interest rate cut in 1998
ATLANTA, Dec 11 (Reuters) - The chief economist of the Economic Strategy Institute said Thursday
he believes the Federal Reserve will cut U.S. interest rates in 1998.
Larry Chimerine, who is also managing director of the Washington-based think tank that makes
economic forecasts for businesses nationwide, disputed predictions by Wall Street analysts that
interest rates would rise. He said, ''There is no inflation, no sign of any inflation, no sign of any
sign of any inflation.''
Chimerine, speaking to more than 1,000 business and political leaders attending the University of
Georgia's Economic Outlook Forum in Atlanta, said the U.S. economy would remain robust in 1998,
with the only negative indicator the impact that weaker Southeast Asia markets will have on the
trade imbalance.
''At least temporarily, the Asia miracle is over,'' he said. ''You can't forever grow your economy
with exports, and they refuse to open their markets.''
He said Asia's problems will have an impact on U.S. exports to the region and the trade imbalance
will grow worse, but the nation's gross domestic product will remain strong. He said that
assessment was based on a broad range of economic indicators he regularly assesses.
''I monitor a whole slew of economic indicators and none of them are flashing caution or red light,''
Chimerine said. ''The fundamentals remain favorable.''
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