FED'S JOHNSON URGES STRONGER ALLIED GROWTH Federal Reserve Board Vice Chairman Manuel Johnson said that the U.S.'s main industrial partners should expand their domestic growth. In a speech to a women's group here, Johnson said, "There is room for stronger domestic growth in those countries ... strong enough to absorb growth in U.S. export markets." Johnson also said there was a better alignment of exchange rates now and the Paris agreement to stabilize currencies has brought western nations a long way towards establishing that goal. Johnson said, "The Fed supports this pattern of exchange rates ... and we'll see if it leads to a convergence in trade. Quite possibly it can be achieved." Johnson said the Paris agreement achieved a better alignment of exchange rates in exchange for stimulus by the major surplus countries. He said this was "a major improvement and a step in the right direction" and added U.S. allies look very strongly to a U.S. budget deficit cut. "There will always be a potential risk of breakdown in international cooperation" without a budget deficit cut.