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To: Jim Ilchyshn who wrote (7009)	1/31/1998 2:09:00 PM
From: Alex	Read Replies (2) \| Respond to of 116762

US Economy To Feel Asia Impact Before Spring Ends LINDA O'BRYON: Federal Reserve Chairman Alan Greenspan's appearance on Capitol Hill was a reassuring event for the financial markets today. But he frustrated congressmen looking for ways to spend the impending budget surplus. And as Dennis Moore reports, he continued a mostly comforting view of the Asian financial crisis. DENNIS MOORE, NIGHTLY BUSINESS REPORT, CORRESPONDENT: The Fed chairman is expecting and hoping that the Asian crisis will slow U.S. economic growth enough to avoid an interest rate increase. ALAN GREENSPAN, CHAIRMAN, FEDERAL RESERVE BOARD: We have as yet experienced only the peripheral winds of the Asian crisis. But before spring is over, the abrupt current account adjustments that financial difficulties are forcing upon several of our Asian trading partners, will be showing through here. MOORE: Showing through in lower demand for U.S. exports and lower prices for imports from Asia. That combination will moderate both overall economic growth and inflation pressures. GREENSPAN: Such a moderation would appear helpful at this juncture. The difficulties in Asia may afford some breathing room from inflation pressures, but they will not permanently suppress the risks inherent in tightened labor markets. MOORE: But there is also plenty of economic risk inherent in troubled Asian markets. The Fed chairman concedes there is a question of fairness. GREENSPAN: It is certainly the case that some lenders have lost less or will lose less than probably they should have. MOORE: But U.S. investors have lost more than $30 billion out of a worldwide loss of $750 billion, Greenspan said, and the idea that everybody is getting bailed out is an illusion. But so too could be the predicted budget surpluses that the president and Congress are now celebrating and Greenspan warned against either spending them or cutting taxes. GREENSPAN: It would be very helpful to the markets to experience a bit of surplus and pay down of debt. MOORE: And a few surpluses are surely not he said, a threat to the economy. Dennis Moore, NIGHTLY BUSINESS REPORT, Washington. Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. (c)1998 Community Television Foundation of South Florida, Inc.