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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (March 28, 1995)
Rising interest rates slow down WASHINGTON (AP) Wail Street has been positively giddv of lute because of a growing belief the Federal Reserve System has finished raising interest rates St« kx hit another rei ord high Monday . hut many private econ omists said the euphoria may l>e premature. The view that the Fed has achieved its hoped-for "soft land ing" helped to spur rallies in stock and bond markets in advance of Tuesday's closod-dcxir meeting of the Fed policy-mak ers. The markets believe wide spread signs of an economic slowdown could make the Fed's February rate increase, the sev enth in n year, the last There was more evidence of a slowdown Monday with a report that sales of existing homes plunged r> per cent in February to a seasonally adjusted annual rate of 3.4.3 mil lion units, the slowest pace in two years This added evidence of a slow down helped push the l)ovv Jones industrial average to n new high of 4,157.34. a gain of 18f>7 points. Monday's inc rease fol lowed a 50.84 gain on Friday. Heavy demand for bonds helped push the rate on Trea surv's benchmark 30-year bond to a nine-month low of 7 31 per cent. down sharply from a November high in long term rates of H 18 pert ent But many private economists, while not looking for a rate increase this week, salt! rei ent signs of weakness in interest sensitive sectors, such as home sales, could represent only u pause that will he followed by renewed strength. "The Fed is patting itself on Clinton has skin lesions removed WASHINGTON (AF) — Doctors removed several pre cancerous skin lesions from President Clinton's forehead and from behind his ear last week The procedure was not mentioned in a report the White House put out on the results of Clinton's annual physical examination on Fri day, but it was disclosed on Monday by spokesman Mike Mi Curry after reporters asked nixiut a red blotch on Clinton's face. MeCurry said doctors removed several actinic ker atoses as a precaution while Clinton was at Bethesda Naval Hospital "They are not cancerous," he said. Actinic keratoses are com mon skin lesions among mid dle-aged people, usually caused by overexposure to the sun. The lesions generally are removed because n chance exists they can become can cerous. The patches of affected skin wore removed by freezing with liquid nitrogen, and the treatment left a large red blotch on Clinton's forehead “They hum off and scab up later.'' McCurry said McCurry quoted Clinton's physician. Dr K Connie Mar iano, as saying Clinton — a frequent jogger and golfer — was 'pretty good about using sunscreen.” the iwe k right now I’oli< v mak <-rs think the soft landing is at hand, but I think they ore pre to at urn 1 am looking for a pause and then a rebound." said David Ionov an economist at Aubrey G Lanston & Co lottos and other analysts pre dieted the Fed would remain on the sidelines at this week's meeting but could resume rais ing rates at its next session of the Fedeml Open Market (VimmiRee on Mav "The conventional wisdom is that Interest rales aren't going any higher, hut I believe there will Im* a snap back in consumer spending that will keep the economy growing at a faster pace than the Fed's target for sustainable growth." said Fugene Sherman, chief econo mist at M.A St hapiro A Co in New York The Open Market Committee at its last meeting on Feb ! boosted the target for the federal funds rate - the interest hanks charge one another — to (1 per cent That was double where the funds rate stood when the Fed began tightening credit on Feb 4. Hi'M ‘Hie committee is composed of the seven Fed governors in Wash ington and five of the l,; region al bank presidents. On Monday Fed governor John La Ware announced he was resigning effw tive April to and would not participate in Tuesday's session While LaW'are has recently been a proponent of tighter cred it policies, analysts said he had generally followed the Federal Reserve Chairman Alan Greenspan's lead during his six years on the Fed. They predicted no major impact on the Fed det i sions from his departure Birth Jones and Sherman fore cast tli«* funds rate would stand at 7.5 percent by the end of the year. I’hov predicted twinks' prime tending rote, currently at ft per cent, would rise by a matching t 5 percentage points over the course of this year, resulting in higher borrowings costs for mil lions of businesses and con sumers I lome mortgage rates, now near a seven-month low for 30-year mortgages at H 40 percent, could rise to i lose to ft percent by veer's end, Jones predicted Not all economists agreed with this rising-rate scenario Some said they believe the economy is slowing to a pace that will keep inflation under control and thus allow the i mitral bank to stay on the sidelines The most optimistic ire even form anting the Fed could start cutting interest rates either late this year or early in Iftftb David Wvss. chief financial -s ononust for DRl-Mi (.raw Hill Who holds to this S lew .1 ills it the "Fed-got-it-right scenario “ "At this (mint, it looks like we will have a soft landing, but we are saying that with our fingers crossed btti ause the hist or it at record shows the Fed has seldom pulled it off. Wyss said The central bank was able to keep inflation under control by slow ing growth while avoiding a recession in Iftftfi and he said But on nine other im t asions sou e World War II, the I ed cred it tightening helped liruig on out right recessions ‘Tile risk always is that a slow down tan easily become n rm es sum." Wyss said Doctors will examine mother accused of murder ( .01.1 MBIA. S ( (AP) A judge gave state dcx tors permission Monday to examine Susan Smith and recommend whether she is competent to stand trial for drowning her two sons in « lake Prosecutors are seeking the death penalty against Sindh, who con fussed to letting her cur. with the hoys stropped inside, roll into the lake on Oi l i'> I ler trial on murder charges is s< hedulod fur July HI (an uit Judge William Howard gave doctors up to a month to decide whether she is sane enough to stand trial and whether she was sane the night her young sons were drowned. Prosecutor Tommy Pope will lx? allowed to use the* doctors* report only during the determination of Susan Smith's competency to stand trial, unless she uses an insanity defense or pleads guilty hut men tally ill, the judge said In that case, Pope can use the report to rehut any pxvt hiatrit tes timony offered in Susan Smith's defense, Howard said —w i ’iiiMuiiuiaaaagBMB—i This Week's Luncheon Special Mee Siam $4.75 CHINA BLUE I RESTAURANT| By our dnners too S r Overheads WOlOr & Slides! Brighten your presentation 4 keep their attention. From Originals or Computer Files the codv center 1265 LU,lU 344-3555 / Fa* 344 0870 The Science, Technology and Si nifty lecture Series The Kiddle of Time: ! msirm's I ntmislKxi Revolution I kror* tr\ > wni',. mu/ omggkr* with (hr im . *1 umr hi* k tmlrt, (in* a .bj*, tmr travel, ihr of tut** (fir c ttvfcrmir of (kid, (He nature of it*' uftjvmc, ,#*1 our |*T*» March VI. K:<H1 pm. IklluNCniltr, Dr. Paul Davies C? 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