The Nation : Commerce Secretary Sees Stable Dollar

Commerce Secretary C. William Verity Jr. said he believes the U.S. economy is strong enough to stabilize the dollar at about its current level, after its recent sharp decline. In an interview on the ABC-TV program “This Week With David Brinkley,” Verity cited an increase in U.S. exports as well as the reduction in the nation’s trade deficit for November to $13.2 billion from $17.6 billion the month before. He predicted that the economy would remain healthy for at least the rest of this year. Verity also said that he believed interest rates would stabilize. Appearing on the same program, Fred Bergsten, director of the Institute for International Economics, said that the dollar will stabilize only through more reductions in the budget deficit and accelerated economic growth among key U.S. trading partners.