February 22, 1989

LEAD: Greenspan Firm on Inflation Before the Senate Banking Committee, Alan Greenspan, the Fed chairman, suggested that he would keep pushing interest rates up until inflation eased. Page D1. Ruling in Obscenity Case The Supreme Court ruled that First Amendment guarantees bar officials from seizing the inventory of adult bookstores before publications have been found obscene at trial.

LEAD: The birth control industry has changed radically in recent years. Research spending is down and the number of companies offering contraceptive products has fallen off sharply, but the field has been lucrative for those that remain.

LEAD: After an initial period of sputter and stall, the public indignation of writers, librarians and civil libertarians grew yesterday in response to the death threats against the author Salman Rushdie and the removal of his novel from many bookstores.

LEAD: THE ECONOMY President Bush's savings-industry rescue plan is based on assumptions that interest rates will decline sharply and deposits will increase steadily, according to figures from the Office of Management and Budget. Some analysts criticized the projections as being too optimistic.

LEAD: The Compaq Computer Corporation said yesterday that it was ending its six-year relationship with Businessland Inc., the nation's largest non-franchised computer retail chain, in a dispute over strategy, including a disagreement over industry standards for personal computers.