U.S. Economic Policy
Feb 4, 1994
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Secretary Lloyd Bentsen, Secretary Robert Reich, and Chair of the Council of Economic Advisors Laura Tyson briefed the media today on efforts to reduce the deficit and create jobs. Secretary Bentsen stated that the .. Read More
Secretary Lloyd Bentsen, Secretary Robert Reich, and Chair of the Council of Economic Advisors Laura Tyson briefed the media today on efforts to reduce the deficit and create jobs. Secretary Bentsen stated that the Administration is about $65 billion ahead of projections on deficit reduction and has created approximately 1.9 million jobs since last January when the President took office. He indicated that the fundamentals for sustained economic growth are “very positive” and that business investment, corporate earnings, and consumer confidence have increased. The Secretary acknowledged that the Federal Reserve intends to raise short-term interest rates by a small amount. "We anticipate that would mean roughly a quarter of a point." The Secretary stated that the Administration anticipated such an increase in its forecast. "We still think the economy will grow at a three-percent rate this year." Secretary Reich discussed the significance of the Goals 2000 Bill, the School-To-Work Opportunities Act, and the Re-employment Bill. Media questions focused on these topics: cutting 100 more federal programs to further reduce the deficit; the stock market’s reaction to the Federal Register’s announcement on raising short-term interest rates; the impact that the cold weather had on retail and service sector jobs; efforts to lower unemployment rates; and the Administration’s meeting next week with Japanese Prime Minister Hosokawa.