OTHER NEWS - May 2, 1994

Bentsen Says Rising Rates Could Hurt the Economy: Treasury Secretary Lloyd Bentsen warned that an increase in long-term interest rates would be especially hard on the housing market. Asked about speculation that the Federal Reserve Board would boost short-term interest again this month, Bentsen said: “If you had a substantial increase in long-term rates beyond what we see now, that would have some contractionary effect, without a question . . . and particularly in interest-sensitive areas such as housing.” Bentsen, appearing on “Meet the Press,” added, “I would prefer we did not see that.” Bentsen said inflation appears to be well under control, with rates approaching 3% for the year.