News In Brief

THE US

Economists are urging caution as the Federal Reserve decides whether to continue on a course of interest-rate cutting. The Fed decided Thursday to reduce its target for the federal funds rate - the rate banks charge each other for overnight loans - by one-quarter of a percentage point to 5.75 percent. The Fed, which raised rates all through last year to cool an overheated economy and prevent inflation, reversed course when it appeared inflation was no longer a threat and the economy was slowing. Economists predict the move was the first of several as the Fed attempts to steer the economy to a period of moderate, sustained growth.

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President Clinton, saying he is close to agreement with Congress on overhauling the nation's welfare system, warned that GOP extremists may kill chances to enact a bill this year. Senator Dole was forced to delay a vote on a welfare-reform bill he supports after some conservatives in his party, led by Senator Faircloth of North Carolina, vowed to filibuster the legislation. The lawmakers have demanded that the Senate bill contain a provision included in the House version that would ban states from using federal funds to help unwed mothers under 18.

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The White House refused to back last-minute efforts by liberal Democrats to restore funds for social programs in a major spending-cuts bill awaiting final approval in the Senate. The administration also stood by its order to agencies not to spend the nearly $16.4 billion targeted for cutting in the bill.

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About 1.3 million US residents faced an assailant armed with a firearm during 1993, the Department of Justice announced yesterday. About 86 percent of the time, the weapons were handguns, the department said. Meanwhile, Nevada has made it easier for residents to carry concealed handguns. Governor Miller signed a law that puts the burden of proof on sheriffs in denying permits to carry a concealed weapon. Previously, sheriffs had greater discretion to deny permits.

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The NAACP, which opened its 86th annual convention in Minneapolis, said its top priority is getting its financial house in order. Newly elected Board Chairwoman Evers-Williams said going public with a long-awaited audit is "part of the healing."

Space shuttle Atlantis glided to a landing Friday after the first East-West linkup in orbit in 20 years, bringing home an American who spent an often-dreary 3 1/2 months aboard Russian space station Mir. Norman Thagard accepted a call of congratulations from Clinton before walking from the shuttle. His two Russian comrades were carried from Atlantis on stretchers.

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Holders of $800 million in Orange County municipal bonds voted overwhelmingly to give the bankrupt government another year to pay. Earlier, a US bankruptcy judge approved an agreement assuring bondholders that they can sue the county's former lead broker, Merrill Lynch & Co., if the county doesn't pay up next summer. The judge also ruled, however, that any such suits would have to be filed in federal district court rather than in his bankruptcy court.

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Retired General Westmoreland, former commander of US troops in Vietnam, said the US shouldn't reestablish full diplomatic relations with Vietnam. Westmoreland's comments came as Clinton prepares to announce a decision this week on establishing diplomatic ties.

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Susan Smith, who is charged with drowning her two sons, goes on trial today in Union, S.C. Smith has confessed to the crime, and her attorney is expected to mount an insanity defense.

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Civil-rights leader Jesse Jackson and supporters will protest moves by the University of California to dismantle affirmative action, even if it means going to jail, a spokesman said. The university will hold a meeting in San Francisco July 20 to decide whether to curtail preferential policies for women and minorities at the school.

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House Speaker Gingrich said the District of Columbia should be returned to Maryland as a way of giving the city's nearly 600,000 residents voting representation in Congress. Gingrich said there is no sentiment in Congress to make the nation's capital a state.

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F-A-18 fighter bombers flying combat air patrols over Bosnia will be equipped with electronic radar jammers that the Pentagon rejected three years ago because of test failures. Defense Secretary Perry approved the shipment of Navy jammers for installation on 12 F-A-18 Hornets.

THE WORLD

Chechen officials turned three prisoners of war over to a Russian delegation as peace negotiations in Grozny resumed. The three Russian soldiers were captured on New Year's Eve, the first day of Russia's assault on the Chechen capital. Fighting continued despite a cease-fire. In Moscow, President Yeltsin reportedly was working on a decree that would excuse Chechen fighters from prosecution if a peace deal is reached.

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