DIGEST
has found more signs of inflation in a vibrant economy. The Fed's most recent survey of business conditions around the nation, prepared for a two-day meeting of the Fed's policy-setting Federal Open Market Committee that begins Jan. 31, found continued economic strength and more widespread signs of price pressures.</br></br>who served as general counsel of the Federal Reserve Board in the mid-1970s, has emerged as the Treasury's leading candidate to become Treasury undersecretary for domestic finance, administration officials said. Except for his three-year stint at the Fed, Hawke, 61, has spent his legal career at the Washington law firm of Arnold & Porter.</br></br>posted higher fourth-quarter profits fueled by higher interest income, as solid loan growth and acquisitions added to their base of assets. San Francisco-based BankAmerica said profit rose 19 percent, Minneapolis-based Norwest reported an 84 percent surge in earnings and Philadelphia-based Corestates Financial said net income was up 17 percent. Fleet said expensive reductions boosted earnings 21 percent.</br></br>tapped former senator Howard H. Baker Jr. to head their lobbying effort as Congress begins rewriting federal communications laws. The Tennessee Republican was Senate majority leader in the early 1980s and served as President Reagan's chief of staff. Baker, who runs a Washington law firm, also is a former board member of AT&T.</br></br>had a record year in 1994 despite continued weakness in its commercial aircraft business, with its profit up more than $200 million to $598 million. For the fourth quarter, McDonnell Douglas earned $165 million, compared with a profit of $143 million in the 1993 period.