To: Glenn D. Rudolph who wrote (17093 ) 9/14/1998 11:07:00 AM From: Glenn D. Rudolph Read Replies (1) | Respond to of 164684
REPORT: CLINTON TO HINT FED SHOULD EASE INTEREST RATES Futures World News - September 14, 1998 07:55 %CURRENCY %ECONOMY %FINANCIAL %STOCK %FED V%FWN P%FWN Washington-FWN-Sept. 14-PRESIDENT CLINTON WILL deliver a speech today in New York in which he will hint that the Federal Reserve Board should consider cutting interest rates, according to this morning's edition of the Washington Post. The speech to the Council on Foreign Relations will address a new emphasis on growth-oriented policies throughout the world to combat the global economic crisis, the Post reported in an article entitled "Clinton to Stress Growth-Oriented Policies," by Paul Blustein. President Clinton, whose administration has typically refrained from public pressure of the Fed, will not say anything directly about U.S. monetary policy, according to the Post. The Fed is an independent institution and a number of its top policymakers are concerned that robust U.S. growth could rekindle inflation. "Sources said Clinton will say that inflation poses little threat to the overall world economy and that policies need to be directed more toward economic growth, which may be taken as at least tacitly suggesting that the Fed should ease credit rates," the Post said. Words of concern from Clinton are likely to reinforce inclinations at the Fed to take actions aimed at preventing the crisis from throwing the world economy into a recession, the Post reported. Administration officials said the speech should be seen as a move timed to defuse an economic crisis that has spread and recently intensified with renewed fury. (If you have questions or comments regarding this story, e-mail Zenon Zawada at zawada@fwn.com)