Registration No. 333-47081 Rule 424(b)(2)
                                     Pricing Supplement No:166 Cusip:14912LYJ4
                                     Dated:  May 6, 1998     

	Caterpillar Financial Services Corporation
	Medium-Term Notes, Series F
	(Fixed Rate)
	With Maturities of 9 Months or More from Date of Issue
	Interest payable each April 1 and October 1 and at Maturity

Principal Amount:       Interest Rate:               Proceed Amount: 
$25,000,000                5.91%                      $24,989,250    
                          	                  
Original Issue Date:    Commission Fee:              Maturity Date:       
05/06/98                  $10,750.00                   06/01/2000          
	   (Discount)	
Dealer:	                
Chase Securities Inc.                               

Specified Currency:     Option to Elect Payment       Authorized Denominations
x U.S. dollars          in U.S. dollars               (only applicable if
_ Other:___________     (only applicable if           Specified Currency is
                        Specified Currency is         other than U.S.
                        other than U.S. dollars):      N/A     
                           N/A                              

The Note is a:                                        Exchange Rate Agent     
    X Global Note                                     (if other than U.S.    
      Certificated Note                                Bank Trust, N.A.): N/A 
      (only applicable if
       Specified Currency                                
       is other than U.S. dollars)                                            
                                 
Original Issue           Total Amount of OID: N/A    Terms of Amortizing     
Discount Note:                                       Notes:  N/A
   Yes     x No          Issue Price (expressed                 
                         as a percentage of    
                         aggregate principal 
                         amount): 100%
                       
                                                      
Redemption Date(s) (including                        Redemption Price(s): N/A 
any applicable regular or                             
special record dates): N/A
	                             
Repayment Date(s) (including                         Repayment Price(s): N/A
any applicable regular or
special record dates):  N/A

Interest Rate Reset Option:  _ Yes    X No

Optional Reset Dates (only applicable if option to reset interest rate):  N/A

Basis for Interest Rate Reset (only applicable if option to reset interest 
rate): N/A

Stated Maturity Extension Option:  _ Yes    x No

Extension Period(s) and Final Maturity Date (only applicable if option to 
extend stated maturity): N/A

Basis for Interest Rate During Extension Period (only applicable if option to 
extend stated maturity): N/A



Historical Exchange Rate (only applicable if Specified Currency other than 
U.S. dollars): N/A

     The interest rates on the Notes may be changed by Caterpillar Financial 
Services Corporation from time to time, but any such change will not affect 
the interest rate on any Note ordered prior to the effective date of the 
change.  Prior to the date of this Pricing Supplement, $716.50MM principal 
amount of the Notes had been sold at interest rates then in effect.

	_________________________________

	Pricing Supplement to Prospectus Supplement dated March 26, 1998
	and Prospectus dated March 10, 1998