Another cut in the U.S. discount rate was foreseen.

Henry Kaufman, Salomon Bros.’ chief economist, said he expects at least one more such cut by mid-year, because the only way to stimulate the sluggish U.S. economy is through monetary policy. He said a half-point cut was likely by mid-year. He also told a news conference during a visit to Japan that he would not be surprised if the dollar fell to 140 Japanese yen and 1.70 West German deutsche marks by the end of this year. It closed yesterday in New York at 153.365 yen and 1.8270 marks.