Masonry Magazine June 1987 Page. 20
WASHINGTON WIRE
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The prime minister faces stiff domestic resistance to a broad trade agreement. Labor and other groups are very concerned about retaining their economic independence.
A KEY AMENDMENT TO THE TRADE BILL STILL FACES A BATTLE in Congress. The proviso would force the President to retaliate against surplus nations. It was sponsored by Rep. Richard Gephardt, an avowed presidential candidate. The provision has polarized business and raised hackles at the White House, while providing a showcase for a candidate trying to break out of the pack. The amendment goes far beyond other key sections of the pending trade bill, which requires retaliation against unfair trade practices by other nations. It seeks reductions in their surpluses by specific amounts each year.
Current handicapping indicates that the amendment, which passed the House, will have a difficult uphill fight in the Senate and probably in a conference committee later on, as well. Then, should it survive that far, a veto of the entire trade measure by the President is guaranteed.
LEGISLATION TO SLOW CORPORATE TAKEOVERS WILL BE PUSHED in Congress. It would require investors to disclose any intent to purchase more than 3% of a company's shares before they make the actual securities transactions. Currently, investors don't have to make disclosure until after a purchase.
INTEREST RATES ARE LIKELY TO HEAD STILL HIGHER in the months ahead, though this is not the unanimous view of government and industry analysts. Actually, forecasting interest rates is a hard call in the current setting. The key indicators of rate trends the economy, inflation, and the dollar-are hard to read. The best bet, however, is that rates are headed higher. Interest rates have been on the increase over the last month and even more. Fears of renewed inflation caused by a falling dollar have pushed them up. Long-term rates have risen a percentage point, with short rates up a half. The expectation is that rates will now stabilize at about current levels.
But most think they will begin edging higher again later this year. At some point, the declining dollar will make U.S. goods more competitive, thus boosting orders, output and employment-that is, activity generally. At the same time, inflation appears likely to pick up some momentum.
Some experts can make a persuasive case for lower interest rates. They maintain that business activity over-all, is likely to remain slow. The Federal Reserve will encourage lower rates, once the dollar stabilizes. The forecasters do not expect inflationary pressures to build up to the point where they would prevent an interest-rate decline.
CONGRESS IS MOVING TO MAKE EMPLOYERS OFFER wider employee benefits, a trend now accelerating because lawmakers are unwilling to increase taxes. It's seen as a way of getting more health and pension benefits to workers but without vastly increasing the Federal budget deficit to pay for them. One plan would require the state governments to make the employers include coverage for catastrophic medical expenses in any health insurance offered. Sen. Edward Kennedy would go a step further, pro-continued on page 36