Regan reverses promise of big economic upturn

Although the administration still expects a modest economic recovery later this year, it will be far from the dramatic turnaround predicted earlier, Treasury Secretary Donald Regan said Sunday.

Regan, interviewed on Cable News Network, said he expects short-term interest rates to drop by about 2 percent to 14 percent by year's end in contrast to his promise a few months ago that the economy would ''come roaring back'' by midyear.