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 PHILADELPHIA, March 4 /PRNewswire/ -- As it stands, President Clinton's economic package is not yet a "credible" deficit-reduction program, investment analysts at PNC Bank said today.
 They said the true impact of the president's proposals will become fully clear only when he puts forth ideas to reduce health care costs.
 The analysts said the administration's budget plan "remains far from a credible, multi-year deficit-reduction program. To be fair to the president, we must wait until he unveils his health care proposal this summer. Health care costs are the fastest rising expenditure in the federal budget, and without addressing health care, any proposal is a Band-Aid."
 In PNC's Investment Policy Statement for March, the analysts also said the Clinton package, as proposed, is not likely to have a major impact on the economy in 1993. "While the president urges passage by April, we think approval by Christmas -- modified by Congress and passed without Republican support -- is not out of the question," the analysts predicted.
 The analysts noted that some observers believe the proposed tax increases could slow economic growth and thus lead to lower interest rates. But they said they believe it is more likely that interest rates will gradually rise during the latter half of this year because the economy will continue to grow and the budget deficit will not improve much this year.
 Despite the uncertainty raised by the administration's proposals, there is still more upside potential for stocks than downside, the analysts said, noting that the economy is still growing and that interest rates and inflation remain low.
 The analysts predicted a trading range of 400 to 475 on the Standard & Poor's 500 and a range of 3100 to 3700 on the Dow Jones Industrial Average over the next several months. They said investors with balanced portfolios should maintain positions of 65 percent stocks and 35 percent bonds.
 PNC Bank is the 10th-largest banking company in the United States, with assets of $51.4 billion at year-end 1992 and more than 550 community banking offices throughout Pennsylvania, Delaware, Ohio, Kentucky, and Indiana. PNC Bank's major lines of business include retail banking, corporate banking, investment management and trust, and investment banking.
 PNC Bank Corp. (NYSE: PNC) operates as PNC Bank in most of its Pennsylvania markets and in Kentucky and Ohio. Its Marine bank in northwestern Pennsylvania; CCNB Bank, Hershey Bank and First Bank and Trust in southcentral Pennsylvania; and Bank of Delaware in Delaware will change names to PNC Bank by the first quarter of 1994. PNC Bank Corp. is headquartered in Pittsburgh.
 -0- 3/4/93
 /CONTACT: Linda Wolohan of PNC Bank, 215-585-5265/

CO: PNC Bank Corp. ST: Pennsylvania IN: FIN SU: ECO

JS-MJ -- PH025 -- 3109 03/04/93 15:49 EST
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Publication:PR Newswire
Date:Mar 4, 1993

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