Fed Governor Touts Economic Recovery ToNASCUS

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ALBUQUERQUE, N.M. - (09/13/04) -- Federal Reserve Governor Susan Bieswas guarded about whether the Fed will spike rates again when itsmeets next week but told state credit union regulators Sunday sheis confident the economy is continuing to expand. "I think ourdirection is clearly up, but there's no urgency," said the FedGovernor during remarks at the annual NASCUS convention. "Clearly,if we had strong job creation, that might put things in a differentperspective. We're not hitting all cylinders yet, and that gives usa little bit of time." The Fed is expected to add another 25 basispoints to the target rate for overnight FedFunds when it meets nextweek, the third increase in the short-term target over threemonths. Bies indicated the Fed might act again next week in its bidto tamper inflation. "We've got to get short-term interest ratesabove the rate of inflation," said told reporters after speaking tothe state regulators.

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