FED'S JOHNSON WARNS AGAINST LOWER DOLLAR Federal Reserve Board Vice-Chairman Manuel Johnson cautioned against seeking "quick-fix solutions" to persistent U.S. trade and federal budget deficits. In particular, he told an American Stock Exchange conference, a decline in the dollar below current levels would exacerbate financial market conditions. "Trying to artificially depress the dollar severely below current levels ... would exacerbate financial market conditions and lead to further potential for financial problems." Nowhere, Johnson said, are Fed officials hearing that U.S. businesses cannot compete at current exchange rates. He acknowledged the U.S. trade deficit was persisting despite a decline in the dollar's value of 40 to 50 pct in the past two years. But the deficit is improving in volume terms and will soon begin showing improvement. "The stage I think is being set for a healthy, constructive expansion without inflationary instability," he said.