Fed Committee Expected To Ratchet Up Interest Rate

Auto dealers, real estate agents, department stores - and their customers - are bracing this week for a possible hike in interest rates.

The Federal Reserve’s Open Market Committee is expected to raise the federal funds rates one-half percentage point, from 5.5 percent to 6 percent, when it meets Tuesday and Wednesday.

When the rate goes up, it increases the cost of funds for banks and is filtered through the economy in higher rates on consumer loans and mortgages. The Fed has raised rates six times in 1994 to slow inflation.

However, it also tends to lift the rates of certificates of deposits and other investments.

In other events this week:

Today

U.S. Department of Commerce reports on personal income for December.

Tuesday

The Conference Board in New York issues results of monthly survey on consumer confidence.

Federal Reserve chairman Alan Greenspan testifies before Senate Banking Committee on the Mexican bailout.

Mayor Wellington Webb may announce the new opening date for Denver International Airport.

Caterpillar Inc. and the United Autoworkers union resume negotiations in Louisville, Ky., on ending sevenmonth strike.

All American Liberty Mortgage Group and Coeur d’Alene Realty hold a free workshop on home buying at 7 p.m. at the Coeur d’Alene Resort. Call 208-666-4002.

General Motors Corp. announces fourth quarter and 1994 earnings.

Wednesday

The Greater Spokane Sports Association holds its 1995 Sports Awards Banquet at 7 p.m. at the Ag Trade Center.

Boeing missiles and space division executive Elliot Pulham discusses selling the international space station at an 11:45 a.m. meeting of the Spokane Advertising Federation, Cavanaugh’s Inn at the Park. Call 456-8770.

Commerce Department reports on leading economic indicators for December.

National Association of Purchasing Management in New York issues its monthly report on manufacturing.

Detroit automakers announce January sales.

Ford Motor Co. reports 1994 earnings.

Commerce Department reports on construction spending for December.

Thursday

Glenn Mason of Cheney Cowles Museum speaks at 11 a.m. in the Shilo Inn at the Hispanic Business/ Professional monthly meeting. Call Michael Maer, 891-0625.

Management consultant Harold Kerzner speaks on a conference broadcast to Schweitzer Engineering Laboratories in Pullman and the Washington State University Tri-Cities branch campus. Call 800-942-4978.

Egghead Software releases quarterly earnings report.

Commerce Department reports on new home sales for December.

Friday

The Service Corps of Retired Executives hosts an all-day “Starting a Small Business Workshop” in the student union of Spokane Falls Community College. A $30 fee includes lunch and private consulting. Call 353-2820.

MEMO: This sidebar ran with story: ON THE SHELF Business Week, Jan. 30: Workers are paying for economic growth, Business Week says. Companies are spending less on wages and salaries as a percentage of income than at any time since World War II.

Dialing for dollars Ways businesses can use Caller I.D. computer programs: FedEx uses its system to identify calls from regular customers and direct them automatically to the same operators each time, allowing for more personal service. Businesses with dial-in computers can use Caller I.D. software to identify hackers and limit computer access to selected callers. Small towns that cannot afford a costly 911 emergency system can use a less expensive Caller I.D. program to identify the phone number, name and address of emergency callers.