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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (32382)	10/25/1998 2:15:00 PM
From: BubbaFred	Respond to of 94695

Financial execs see risk of U.S. recession biz.yahoo.com Sunday October 25, 12:46 pm Eastern Time Financial execs see risk of U.S. recession NEW YORK (Reuters) - Interest rate cuts did not do enough to boost the U.S. economy and more than one-third of corporate financial officers expect a 50 percent or higher chance that there will be a recession in the next year or year and a half. According to a survey from the Treasury Management Association, a group that includes treasury and financial executives, another 16.9 percent felt there was at least a 40 percent chance of recession. ''The message these treasury and financial executives seem to be sending is that the Fed (Federal Reserve Board) has not yet taken sufficient steps to deal with the current economic turmoil,'' TMA Chairman Patrick Montgomery said. ''The fact that 48 percent said they feel interest rates should be lowered at least another quarter percent by Dec. 31., 1998, indicates a sense of urgency,'' he said. In another indication of the perceived need for further government action, 53.9 percent of the respondents in the survey of 445 senior financial executives said they favored regulatory or legislative restrictions on financial institutions' ability to lend to hedge funds. The executives, on average, expected interest rates for 90-day Treasury bills to be 3.99 percent in six months. They expected the 30-year Treasury bonds to be about 4.85 percent in six months. More than 44 percent of the executives felt the Fed should lower interest rates by one-quarter of a percent. More than 40 percent said the Fed should lower rates by one-half percent. The survey by the Bethesda, Md., based group was conducted by fax in early October. Related News Categories: US Market News