Economist Sees Interest Rates Rising
While Treasury Secretary John B. Connally was telling a Senate subcommittee yesterday the worst thing that could happen to the economy was a rise in interest rates, the top economist for one of the nationÛªs largest stock brokerage houses was predicting an increase in both long and shortterm rates.</br></br>Henry Kaufman, of Salomon Brothers, said that by this summer short-term Treasury bill rates should be up to 5% per cent, with longer term corporate securities up to IVz to 8V2 per cent. Weekly Treasury bill rates yesterday jumped</br></br>Bond prices, though, closed at near their lows for the day in very quiet trading. Fixed income securities have been declining for the last seven or eight weeks. Corporate bond prices were marked down about $1 from Friday.</br></br>Meanwhile, the dollar came under renewed pressures in Germany yesterday after reports that West German central bank president Karl Kla-sen had resigned.</br></br>The dollar closed at 3.542 marks to the dollar, roughly unchanged from its opening position. After rumors of Kia- senÛªs resignation emerged, it had slipped to 3.536 marks to the dollar. When the Bundesbank denied the rumor later, the dollar moved back up.