April 8, 1991

Cooperating With Inquiry William Kennedy Smith, the suspect in the reported rape at the Kennedy family mansion, gave blood and hair samples to the police. Page A8. Judges to Go to Rikers Hoping to ease jail and court congestion, New York City will open two courtrooms inside Rikers Island's prison fences. Page B1.

Amid a debate at the Federal Reserve Board over whether lower interest rates are needed to help the nation out of recession, the central bank's policy-making body has curtailed the authority of its chairman, Alan Greenspan, to reduce rates on his own, high Government officials said over the weekend. In his nearly four years as chairman, Mr. Greenspan has never before been so openly challenged by other members of the Federal Reserve's policy-making body, the Federal Open Market Committee. Its members include Mr. Greenspan, the 4 other governors of the Federal Reserve Board and the 12 presidents of the regional Federal Reserve Banks.

A survey on health care, taken among chief executives of the nation's largest companies, has found that 91 percent of them say a fundamental change or complete rebuilding of the health-care system is needed. The survey also found that 73 percent of the executives said the problems could not be solved by companies working on their own. A majority said Government intervention was necessary.

Two elements of the Bush Administration banking plan -- repairing the bank insurance fund and giving regulators power to move sooner into troubled banks -- may well become law, lawmakers and their aides say, but a proposal to permit industrial ownership of banks seems sure to die. The laws that govern the banking system are high on Congress's agenda as it returns Tuesday and begins a long series of hearings on how best to address the industry's growing problems. Testimony from officials, industry representatives, experts and others is expected to last through the summer.

The Economy The Fed's policy makers have curtailed the authority of the chairman, Alan Greenspan, to reduce interest rates on his own, officials said. The reduced authority means Mr. Greenspan will have to work harder to justify rate cuts that he wants to make between meetings of the Fed's policy-making body. [ Page A1. ]