August 31, 1989

LEAD: Criticized as too classical and not garish and lively enough, the designs for four office towers in the Times Square redevelopment project have been overhauled.

LEAD: The Kellogg Company said yesterday that it will soon market a cereal that includes the grain psyllium, aimed at consumers anxious to reduce their blood cholesterol levels. The product, known as Heartwise, follows the lead of General Mills' psyllium-based cereal Benefit, which was introduced last spring, and it is expected to touch off new conflicts about the health claims made for such cereals.

LEAD: A former Government housing official who is at the center of Congressional inquiries has told a Federal grand jury that Reagan White House aides repeatedly sought to intervene in an urban renewal program once lauded as free of political influence.

LEAD: Bowing to intense public criticism, the planners of the Times Square redevelopment project yesterday presented entirely new designs for four office towers, including one with a 27-story built-in sign.

LEAD: Americans are putting more cash into mutual funds than at any time since the 1987 stock market crash, new figures released yesterday showed. As a result of that and the market's 1989 rally, the total assets of stock and bond mutual funds now almost equal the record set just before the crash.