LONDON - Thomas G. Labrecque, chairman and chief executive of Chase Manhattan Corp., said he expects the Federal Reserve to take a "wait and see" the outcome of the last increase in interest rates before moving to bump them any higher.

Mr. Labrecque, answering questions at the International Monetary Conference, deemed the current federal funds rate of 4.25% "neutral." The Fed raised its rate to that level on May 17.

Mr. Labrecque also said his outlook on business opportunities in Mexico is "very positive," and he noted that Chase has applied for a license to expand its business in that country.

Chase earned record first-quarter profits of $364 million.

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