
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, June 7, 1990                   TAG: 9006070192
SECTION: BUSINESS                    PAGE: C6   EDITION: METRO 
SOURCE: 
DATELINE: SAN FRANCISCO                                LENGTH: Short

FED SIGNALS NO INTEREST RATE CUT

The Federal Reserve Board signaled Wednesday that it is not ready to reduce short-term interest rates in the United States despite fresh signs that the economy is stagnating.

At a news conference here, Fed Chairman Alan Greenspan conceded that the economy's growth rate is exceptionally slow. But he insisted that the overall vital signs are still "quite ambiguous," and he said the Fed does "not as yet see any underlying deterioration."

In Washington, meanwhile, three top federal regulators said there had been a slowdown in bank lending but no credit squeeze.

At a hearing of the House Small Business Committee, the regulators - John P. LaWare, a Federal Reserve governor; Paul G. Fritts, a director at Federal Deposit Insurance Corp.; and Robert L. Clarke, the comptroller of the currency - said the pain felt by small businesses and real estate developers who have been turned down for loans was a price to be paid for maintaining the banking industry's financial health.

"The economy's credit needs are being met," said LaWare. - From wire reports

by CNB