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September 17, 1998 - Image 2

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The Michigan Daily, 1998-09-17

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2A - The Michigan Daily - Thursday, September 17, 1998ORLD
Fed chair says there's no plan for rate cuts



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WASHINGTON Federal Reserve Chairperson
Alan Greenspan told Congress yesterday there is no
current plan for a coordinated cut in interest rates by
the central banks of major industrial countries to spur
slowing world economic growth.
Greenspan didn't rule out rate cuts, either by the
Fed alone or in concert with other central banks, if the
turmoil in global financial markets, which has spilled
over into U.S. markets, threatens continued US. eco-
nomic growth.
The next meeting of Fed policymakers is Sept. 29,
but Greenspan's comments and those of numerous

other central UanI oiicais suggest uat a aite cut at
that meeting is unlikely. Greenspan's counterpart in
Germany, Hans Teitmeyer, president of the
Bundesbank, said this week he sees no need for a cut
in his country's interest rates.
The Fed chairperson characterized the U.S. economy
as "still strong," but added, "there are the first signs of
erosion at the edges, especially in manufacturing." In
testimony before the House Banking Committee, he
also said the financial crises in East Asia and Russia
also have boosted interest rates being paid by some bor-
rowers in this country, which will tend to slow growth.
A Fed reduction in short term rates would lower the

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Continued from Page IA
the Year 2000 Impact is ov
University's effort to make,
er systems year 2000 comp
"We are doing all wec
sure that the University fun
same level on Jan. 1, 2000
Dee. 31,1999,'said Gloria'
Year 2000 project leader.
Within the University
managed computer in
which includes payroll an
aid systems, the committee
fied programs that need to'
and has scheduled softwan
begin in January, Thiele sai
"All the units need to 1
mission-critical functions,
whether they are Y2K co:
test them in their actual en
Thiele said.
While the University ist
to make sure campuswid
systems are Y2K complian
lem of a decentralized envi
which each separate schoolY
computer network is cause1
"We're trying not to pan
but let them know it's a
problem," Griffith said.
To combat the proble
University department run
separate computer system1
be fixed individually, a re
from each of the Univer
Continued from Page 1A
Heatley earned a degree inc
tice from Madonna Ui
Livonia and an associate of
in police administrat
Schoolcraft College in Livo
also graduated from the F
Academy. IHe served in the
and was captain of the s'
department. After 23 year
with the state, he retired an
come back to his home to

costs of borrowing for businesses and consumers,
which would tend to encourage spending and econom-
ic growth.
Although some traders had hoped for stronger hints
of a rate cut, Wall Street generally had a subdued reac-
tion to Greenspan's remarks. The Dow Jones industri-
al average ended up 65.39 points at 8,089.78.
Treasury Secretary Robert Rubin, who also testi-
fied before the committee, agreed that the U.S. econ-
omy is strong. But he noted that American exports to
Japan and other nations with economies that have
been hurt by the turmoil have been falling and that
U.S. corporate profits are under pressure.
schools, colleges, and departments has
been appointed to coordinate efforts
within their unit.
erseeing the "We want to have a lot of informa-
all comput- tion available because this a decentral-
liant. ized environment," Thiele said. "There
can to make is still a lot to be done, but the
ctions at the University is working together. It's a
as it did on very delicate balance between function-
Thiele, ITD ing as an organization and as separate
schools and divisions."
's centrally- Another major project of the
frastructure, Committee to Review the Year 2000
nd financial Impact is to make sure the entire
e has identi- University community is aware of the
be replaced Y2K bug and to take steps to prevent
re testing to personal programs and applications
d. from crashing.
look at their "From our standpoint, we want to
, determine make sure that people are doing the
mpliant and things to make sure that the fix is going
vironment," to work." said Bruce Spiher, HI) mar-
keting services manager.
taking steps Although the University is undergo-
e computer ing a major effort to fix its systems,
at, the prob- many students are not aware of what is
ironment in taking place.
runs its own "I haven't thought about it personal-
for worry, ly, because I haven't heard the
ic everyone, University make an issue of it," said
n important LSA senior Patricia Donnellan. "I
thought about it more in terms of banks
em of each and businesses."
ning its own More information on current
that need to University measures to fix the Y2K bug
epresentative can be found at
sity's major http:/Avwwyear2000. umich.edu.
IHeatley will retire March 31. The
department has not yet started looking
criminal jus- for his replacement, Baier said.
niversity in "We do not have anyone in mind
f arts degree right now," he said "Leo has given us
ion from six months to think about it."
nia. leatley Baier added that when the time does
BI National come to select a new director, the com-
e IJ.S. Navy mittee will be composed of members of
tate's police the University community.
s of service Ent said he hopes the cooperation
d decided to with the city will continue under the
wn -- -Ann next director.

GOP debates proposed tax cut combination
WASH INGTON -Congressional Republicans are debating whether or not to
combine tax cuts they prize in a package with spending increases President Clinton
wants, part o f a GOP effort to control the agenda as Election Day approaches.
Some Republicans see the strategy as a way to divide Democrats by luring some
to support the tax package, then daring Clinton to cast a risky veto. Others worr-
the tactic could backfire if the package dies of its own weight in Congress, oppos
by conservatives who oppose more spending and GOP moderates leery of using
budget surpluses for tax cuts.
Either way, the internal GOP deliberations underline the party's efforts to gauge
how severely the Monica Lewinsky affair has weakened Clinton's political clout.
"I think the guy is in a mood to light," Rep. David McIntosh (R
-Ind.), said. "le's in the past been able to change the subject by picking fights."
The maneuvering over the tax package, which the House Ways and Means
Committee plans to vote on today, also highlights the uncertainty many Democrats
have about whether Clinton will stand by them in a battle with Republicans.
"I think the critical test is going to be the tax cut issue and whether or not he
compromises or stands his ground," said Rep. James Moran (D-Va.) "A lot of peo-
ple feel there will be a compromise, that he's not confident that he can withsta*

the same kind of test that he withstood in
Shareholders to OK
union of automakers
DIETROIT Shareholders of
Chrysler Corp. and i)aimler-Benz AG
plan to meet tomorrow to bless the pend-
ing marriage of the two automakers, from
which the powerhouse DaimlerChrysler
AG will be born by year's end.
If the $38 billion stock swap is
approved as expected, the meetings in
Wilmington, Del., and Stuttgart,
Germany, will mark the last time the
shareholders gather as owners of the
separate companies.
The proposed combination of the No.
3 U.S. automaker with German's largest
company was announced in May and has
passed its biggest regulatory hurdles.
With tomorrow's meetings, it enters
its final, most critical stage.
The Chrysler meeting is expected to
be a brief aifair, as most votes will have
already been cast by mail or via the
Internet. The company is expecting only
about 200 shareholders to show up at
the Hotel du Pont.
Some opinion is expected from

Chrysler shareholders and employees
who view the deal as an ill-advised
takeover of a profitable American com-
pany by a stodgy German holding
company. They have camhe of suitable
companies together," Rowen said.
Whtewater tial
delayed for week
SANTA MONICA, Calif. - The
embezzlement trial for Whitewater figure
Susan McDougal was delayed for a week
to accommodate witnesses' schedules.
McDougal was warned by the judge
that she faces a contempt citation if she
refuses to sit still during testimony.
During the hearing Tuesday,
McDougal brought her fist loud
down onto the defense table and
swirled nearly one full turn in her chair.
"It's not acceptable to this court,"
Superior Court Judge Leslie Light said
yesterday. "If we have repetition of that
conduct, there's going to be two possibili-
ties." The first is to fine or jail
McDougal, and the second is to send
her to a "listening room" where she can
monitor the proceedings. g



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Israel hails launch
test of new missile
JERUSALEM -When Israel staged
a successful test launch of its sophisti-
cated Arrow-2 missile this week, people
here cheered and marveled at the dis-
play of technical prowess.
Here was a supersonic specimen of
Star Wars weaponry built to do what
the American Patriot missile could not
do in the Persian Gulf War -- reliably
shoot down incoming missiles at
speeds up to two miles per second trav-
eling 10 or 25 miles above the Earth's
surface. It was, said the Arrow's back-
ers, like designing "a bullet that could
hit a bullet."
Israeli military men issued steely
declarations of success that contained a
warning to regional enemies such as
Iraq, which fired 39 Scud missiles at
Israel during the Gulf War, and Iran and
Syria, which have developed long-
range missiles of their own designed to
reach the Jewish state.
"Yesterday was a bad day for haters
of Israel,"one unnamed defense official
told the Israeli daily Haaretz, speaking

of Monday's test in which an Arrow
prototype "destroyed" a computer-sim-
ulated target over the Mediterranean
Sea after a 97-second flight.
At this point, the Arrow's ability*
knock down an incoming missile trav-
eling at up to nine times the speed of
sound is still theoretical, since it has yet
to be fired against a real target.
Searchers cannot find
pieces of wreckage
HALIFAX, Nova Scotia -- Nax
officials overseeing the underwater searcW
for the wreckage of Swissair Flight 111
said they are no longer confident of find-
ing any large pieces of the plane.
Crash investigators said last week
that five large sections of the plane had
been located by sonar on the ocean
floor off the Nova Scotia coast.
But divers working to retrieve air-
craft parts and human remains say they
have found no large pieces of the wide-
bodied MD-11, which crashed Sept.
killing all 229 people on board.
- Compiled from Daily wire reports.

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