Thursday August 23 1:59 PM ET Fed's McTeer Sees Higher Unemployment

DALLAS (Reuters) - Federal Reserve (news - web sites) Bank of Dallas President Robert McTeer said on Thursday the U.S. unemployment rate was likely to rise further and this would have a disproportionate impact on Americans on the fringes of the labor force.

McTeer, who is currently not a voter on the interest rate- setting Federal Open Market Committee (news - web sites), made no direct reference to monetary policy in his speech to a Dallas Fed conference.

``Total employment has declined for about five months now and the overall unemployment rate has risen from 4 to 4.5 percent. It will rise more,'' said McTeer.

The U.S. unemployment rate has edged up during 2001 as corporates have slashed costs to cope with falling profits as economic growth has stalled.

``The dramatic gains made in recent years by those on the fringes of the labor force are threatened. So far the damage has apparently not fallen disproportionately on them, but it will if we do not get the economy jump started soon,'' McTeer added.

http://dailynews.yahoo.com/h/nm/20010823/bs/economy_fed_mcteer_dc_1.html

-- Martin Thompson (mthom1927@aol.com), August 23, 2001