Interest Rates Unchanged; Construction Growing
WASHINGTON (Dec. 17) -- Two indicators show the economy continuing to maintain its strength. The Federal Reserve's monetary-policy committee, holding its final scheduled meeting of 1996, Decided today to leave interest rates unchanged. Apparently convinced that inflation and economic growth have been running at a good balance, the Fed has not raised rates since January. Another sign of strength was an unexpected jump in construction starts, according to data from the Commerce Department. November construction starts of new homes and apartments were up 9.2 percent, surpassing economists' predictions to reach their highest level in more than a year. The new report indicated the biggest gain since July 1995 and followed back-to-back drops in October and September.
Christopher: No Penitence, No Aid
WASHINGTON (AllPolitics, Dec. 17) -- Secretary of State Warren Christopher said today the United States is considering an aid package to North Korea, but first the dictatorial regime must make a gesture of regret for the submarine incident of last September. Christopher, appearing with Italian Foreign Minister Lamberto Dini, said the spy incursion into South Korea is "an incident that does require some action or comment before we can proceed." Christopher said North Korea must realize the importance of "expressing regret or making some other gesture." The outgoing secretary of state said talks in New York with the North Koreans involve a wide variety of subjects, including a possible U.S. aid package of food and energy assistance. Other officials indicated that a North Korean gesture of regret could be part of the package.