15 January 2004, 17:16  Fed's Guynn - dollar adjustement orderly

ATLANTA, Jan 15 - Atlanta Federal Reserve President Jack Guynn said on Thursday that the dollar's slide had been controlled and was not hitting the U.S. economy -- a clear signal that the Fed remained relaxed over its weakness. "The (dollar) adjustment has been very orderly, at least as best I can tell...I don't have the sense that it has terribly impacted our economy or is likely to be some very disruptive force," he told the Buckhead Business Association. Guynn also said fiscal and monetary policy ought to begin shifting its focus from measures to counteract economic weakness to the longer term, adding that the deficit, seen above 4 percent of GDP this year, had to be brought in check. "The kind of deficits that we are seeing and are projected are not sustainable...I think its time for those (fiscal policy-making) folks to begin to shift and think longer term, just as we, I think, with monetary policy have to begin to think longer term," he said//www.reuetrs.com

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