Bush Aide: Economy in Lull `at Best';Boskin Close to Saying U.S. Starting Recession
Michael J. Boskin, President Bush's chief economic adviser, yesterday came close to saying the U.S. economy is entering a recession, acknowledging that "at best it is in a lull" that is likely to last until after mid-1991.</br></br>He said that after a long period of sustained growth, the economy is clearly in a slowdown that had begun even before the Aug. 2 Iraqi invasion of Kuwait.</br></br>The impact of higher oil prices would begin to be felt significantly in this quarter and the first three months of next year, Boskin said in a speech here to the American Council for Capital Formation.</br></br>Given the uncertainty about the outcome in the Persian Gulf, "we can't see how long or deep the oil shock will be," he said.</br></br>{In Tokyo early this morning, the currency and stock markets reacted to the new uncertainties about the situation in the gulf after Bush said he would send more troops to the region. The dollar was changing hands at 130.38 yen at late morning, up 0.88 yen from yesterday's close. The 225-issue Nikkei stock average, continuing a slide that began Tuesday, was down 1.51 percent.}