European Stars And Stripes (Newspaper) - April 20, 1986, Darmstadt, Hesse                                Sunday april 20, 1986 the stars and stripes Page 5 fed cuts discount rate to 8-year Low of 6.5 % Washington a the Federal Reserve Board said Friday that it is cutting its discount rate to 6.5 percent the lowest level for this key lending rate in eight years. The move was expected to add further momentum to a dramatic plunge in other in Terest rates. It was the second time in six weeks the fed has Cut its discount rate the interest it charges to make Loans to financial institutions. A Cut in the discount rate is the most dramatic signal the Central Bank can Send that it intends to push interest rates lower. Interest rates have already fallen sharply this year reacting both to an easier Mone tary policy on the part of the fed and to the dramatic plunge in world Oil prices. Wide anticipation of the latest Cut helped Spur huge rallies wednesday in the Stock and Bond markets. The fed s move which will take effect on monday puts the discount rate at its lowest level since Early 1978. A wide variety of other interest rates including mortgage rates Are also at their lowest Levels in eight years. Economists predicted that the new discount rate Cut Down from 7 percent Wallsend rates lower still. The fed decision was made on a 4-1 vote with fed Reserve chairman Paul Volcker voting with the majority. Allen Sinai chief economist for Shearson Lehman Brothers predicted that the nation s major Banks would move quickly to Cut their prime lending rate by one half percentage Point As Well. He predicted that a variety of other rates would drop in the next two or three weeks. Tom Megan an economist with Evans economics a Washington consulting firm said such consumer rates As car Loans also will plunge in the Wake of the fed action. The fed is obviously concerned about getting the . Economy moving he said. While future prospects Are Bright the cur rent data does not show that the . Econ omy has picked up  the fed did not mention economic growth As one of its reasons for action. It chose instead to emphasize that a variety of interest rates have already fallen saying the action. Is a technical change de signed to place the discount rate in a More appropriate alignment with the prevailing level of Market  both Sinai and Meegan said while they expect some further declines in interest rates they Are not Likely to be As dramatic As what has already occurred. The fed said a Cut in the discount rate appears consistent with International in Terest rate  japanese newspapers reported earlier that the Bank of Japan Likely would Cut its discount rate saturday if the fed trimmed its comparable rate Friday. Quoting sources the japanese news re ports said that if the . Discount rate was Cut the Central Bank would most probably Convene a special meeting of its policy Board on saturday and implement a half percentage Point reduction from its present rate of 4 percent. That would match a re Cord Low that prevailed from March 1978 to april 1979. The Bank of Japan has a policy never to comment on changes in discount rates be fore any official announcement. The Bank of Japan has lowered the Dis count rate twice this year by half Point increments on Jan. 30 and March 7. The latter reduction came on the same Day that the fed last Cut its discount rate. The Central Bank of West Germany also Cut its discount rate at that time. The action by All three countries is considered a coordinated Effort to drive worldwide interest rates lower to Spur economic growth. Alternate Indiana school started because of tear of boy with aids Kokomo ind. A children whose parents fear they might contract aids from classmate Ryan White will begin attending special classes in a former american legion Hall tuesday a group of parents said. Larry Gabbard of concerned citizens and parents said the parents agreed thursday night to begin an education program. Tuesday s the Day we Are shooting for wednesday at the latest Gabbard said adding that the owner of the former Russiaville american legion Hall was providing it free. He did not say who owned the building. Gabbard said he expects 23 pupils to withdraw from the Western school corp. And attend the special classes. The group will pay the salaries for two teachers with two substitutes on standby and children will be taught from school corporation textbooks and lesson plans. School superintendent . Smith said Friday he is allowing use of the books because families already paid rent for them for this school year. Gabbard s group opposes Ryan s return to school be cause of fears other children could contract the disease he contracted through tainted blood products. Ryan 14, from Kokomo is a Haemophilia a. His acquired immune deficiency syndrome was diagnosed in december 1984. Although health officials have said repeatedly that aids cannot be spread through casual Contact a court and administrative fight kept Ryan from attending school for much of this school year. He returned feb. 21 after a health officer ruled he posed no health threat to other pupils or teachers. But the parents group obtained a temporary injunction that same Day barring him from school. Clinton circuit court judge Jack r. O Neill struck Down the injunction on april 10, saying the court had no evidence of a threat of irreparable harm to justify the injunction. Ryan returned to class later that Day. The parents group plans to Appeal o Neill s ruling. Chrysler Mitsubishi break ground Normal 111. A Chrysler corp. And Mitsubishi motors corp. Broke ground Friday on a $600 million Auto Plant and said it would make 60,000 More subcompact than first planned in part because of the falling Dollar. The Diamond Star motors corp., a joint venture of Chrysler and Mitsubishi will produce 240,000 cars a year beginning in late 1988, instead of the 180,000 originally planned said Gerald Greenwald Chrysler s vice chair Man and Toyoo Tate Mitsubishi s president. The expanded capacity will add $100 million to the Cost of construction originally estimated at $500 million and add 400 people to the Plant s work Force which was first put at 2,500, they said. The companies decided to increase production because Market research indicated the car would be More popular than first thought and because of the Dollar s slide against Sands of time in the stars and stripes 40 years ago foe a. April 20, 1946 president Truman told the american association of newspaper editors in Washington that the world food situation is Blacker than it has been  30 years ago today. April 20, 1956 american actress Grace Kelly and Prince Rainier Iii of Monaco took their final vows of marriage in Monte Carlo and sailed away for a Mediterranean honeymoon. 20 years ago today. April 20, 1966 Britain s Julie Christie the Jet set swinger of Darling and Lee Marvin the alcoholic gunslinger of cat Ballou won oscars As the Best actress and actor of 1965 at the 38lh motion picture Academy awards. The sound of music won Thebes film award. 10 years ago today. April 20, 1976 Fri agents shot and killed a gunman As he boarded an Airliner he thought was to Fly him to Mexico an Fri spokesman in Denver said. The yen said Tate and Greenwald. With the yen having strengthened some. There is some encouragement for foreign investments in the United states Greenwald said. It is less expensive for them Mitsubishi to invest Here. The falling Dollar also makes it Likely that a greater percentage of the car s components will be made in the United states instead of being imported from japanese suppliers they said. Under the joint venture Chrysler and Mitsubishi each will take half the cars produced and Market them under their own nameplates. During Friday s ceremony in a Cornfield West of nor Mal the 636-acre site was blessed by a shinto priest and participants cracked open a barrel of Sake. About 500 dignitaries attended. Welcome Home a photo president and mrs. Reagan embrace at Andrews fab md., after his return Friday from a trip to new York. The reagans promptly left Andrews for the presidential Retreat at Camp David md., where they planned to spend the weekend. Kelogg Recas just right Metal shavings in 3 boxes Nashville Tenn. A the Kel Logg co. On Friday ordered a recall of just right breakfast Cereal from stores in the Southeast and Northeast after Metal shavings were found in three boxes. The company ordered stores to remove boxes with two specific lot numbers spokes Man Joe Stewart said from Battle Creek mich., where Kellogg is based. The specific states affected by the recall were not immediately known. The boxes that contained the shavings were found in Nashville and Knoxville and were packaged and processed at a Memphis Plant he said. We have been Able to Trace this Back to a contractor that was doing some drilling work in and near the line this product was packaged on Stewart said. The lot numbers being recalled Are ma008, with an expiration Date of March 31, 1987, and ma009, carrying the same expiration Date he said. Kellogg does not consider the shavings a health Hazard because they Are extremely tiny and could be digested Stewart said. We be had physicians look at this Metal and we Are advised that the Metal is very unlikely to cause any Adverse health consequences he said