FED OFFICIAL PLEASED WITH Y2K PREPARATION

The majority of banks in the United States are doing well in their preparations for Y2K and 2000.

As of March 31, every bank nationwide has been reviewed twice by the Federal Reserve and other regulators, mostly with good results.

"No one can say there won't be glitches," said William Poole, president and chief executive officer of the Federal Reserve Bank of St. Louis. "But we feel confident that the nation's financial system will be prepared for the century rollover."

Poole was in Cape Girardeau Thursday to talk with city and county officials, business people, school and university representatives and community leaders.

Y2K, the nation's work force and the good economy were among topics discussed as Poole met with various groups during the day.

"We take Y2K preparedness seriously," said Poole. "As a country, we all share responsibility for meeting the Y2K challenge."

The Federal Reserve and the banking system are doing their parts, said Poole. "We believe the public will do its part as well."

Thursday's meetings, among several held throughout the Federal Reserve System during the year, serves a dual purpose, Poole said. "It gives us an opportunity to gather important information on the area's general economy, and it gives us a chance to talk about the Federal Reserve System," he said.

The No. 1 goal of the Federal Reserve is to hold the line on inflation by making sound economic decisions in adjusting the discount interest rates charged depository institutions when they borrow money. The current rate is 4.75, following three quarter-percent decreases since February 1998, when the rate was 5.5 percent. This goes along with the Federal Reserve's responsibility to provide monetary policymakers with timely regional economic and financial information.

"We do this a number of ways," Poole said. "We have area meetings throughout our district. We also have a number of meetings in St. Louis with various groups and organizations."

The regional information is merged with economic research from the nation and the world.

Area businessmen, county and city officials and community leaders attended a breakfast at Drury Lodge Thursday. A number of area bankers were present for a meeting held later in the day.

"By talking with people in the area we can identify various pockets of the economy," said Poole. "We discuss any changes in business trends along with monetary policy issues."

All of these comments are treated in confidence," he said. They are used to formulate and implement the nation's monetary policy in economic growth and stable prices.

The Federal Reserve System, established in 1913, is a nationwide network of 12 district banks with 37 additional branches and offices. A seven-member Board of Governors headquartered in Washington is appointed by the president and confirmed by the Senate.

Each of the 12 districts is headed by a president appointed by the bank's board of directors.

The Federal Reserve Bank of St. Louis serves all of Arkansas, eastern Missouri, western Kentucky, western Tennessee, southern Illinois, southern Indiana and northern Mississippi. Poole directs the activities of the bank's head office in St. Louis and its three branches in Little Rock, Ark., Louisville, Ky., and Memphis, Tenn.

The Federal Reserve offers the public opportunities to tour Reserve facilities. Tours of groups up to 42 people can arrange tours, and individuals may participate in "walk-in" tours each Friday at 11 a.m.