To: Lucretius who wrote (44424 ) 12/6/2000 12:03:17 PM From: Box-By-The-Riviera™ Read Replies (1) | Respond to of 436258 a good news, maybe bad news press conference can you say lame buck presidency? Wednesday December 6 11:42 AM ET White House Adviser Sees Soft Landing WASHINGTON (Reuters) - A senior economic adviser to President Clinton (news - web sites) said on Wednesday he believed the U.S. economy was firmly headed for a soft landing in which growth slows to a less-inflationary pace without causing a recession. ``I think we're still very much on track for a soft landing,'' Martin Baily, chairman of the White House's Council of Economic Advisers, told Reuters Television in an interview. ``There's always a problem with adjusting to more moderate growth, but I think we're doing that.'' Baily's comments came a day after Federal Reserve Chairman Alan Greenspan (news - web sites) said the central bank was closely monitoring the economy for signs of an excessive slowdown, signaling he no longer thinks inflation is the prime threat to the nation's record expansion. ``There is moderation, there is slowing, but I don't see us hitting the runway too hard,'' Baily said. He said the economy was likely to grow by between 2.5 percent and 3.0 percent in the final quarter of the year, after expanding by 2.4 percent in the July-September quarter. Baily added that he expected productivity growth, which has been credited for helping to keep a lid on inflation, to decelerate to around 2 percent from a gain of 3.3 percent in the third quarter. He also said consumer confidence was holding up well despite growing fears of an economic slowdown in the face of substantial volatility in the stock market over recent weeks. ``If you look over the last year, the market's still showing us that consumers have a lot of wealth,'' he said. But he also said that the risks of an excessive slowdown now appeared greater than those of an uptick in inflation, echoing a similar assessment by Greenspan on Tuesday. ``There has been a shift in the balance of concerns, and appropriately so,'' he said. ``Now we're seeing more widespread evidence of softening, particularly in manufacturing.''