Word: feds
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Dates: during 1970-1979
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Many economists believe that money growth must be slowed or inflation will never subside, and the dollar will never strengthen more than momentarily (a good many of the newly created dollars find their way overseas and are sold on the money exchanges for other currencies). Officially, at least, the Fed agrees. It has been trying to move interest rates up enough to discourage borrowing, so that it will not be under pressure to add so much to bank reserves in order to meet the demand...
Last week's moves by the Fed just might, at last, slow down money growth. The money supply did in fact increase much more gently in October; during the week ended Oct. 25 it actually fell a striking $5.4 billion, to $358.9 billion. Not much can be read into one week's figures, but the drop came even before the sharp jumps in the discount and Fed funds rates. Bankers view the $3 billion increase in reserve requirements as an especially important, direct move to restrain the money supply...
Impressive as the dollar's immediate gains were, the greenback will stabilize in the long run only if Carter and the Fed demonstrate that they will stick to a tight-money policy as long as may be necessary to reduce inflation, which could be several years. Meanwhile, higher interest?New York's Citibank led the parade last week by increasing its prime rate to a numbing 10.75%?will raise the cost of borrowing by businessmen to build factories or buy machinery and by consumers to finance new homes, cars or college educations...
...that the inflation rate was rising in the U.S. while it was going down in other countries, and Washington in their view was doing little to check it. Different sections of the Government were even working against each other. Step-by-step increases in interest rates forced by the Fed failed to halt an inflationary increase in the U.S. money supply. So those who sold dollars regarded the sales as a can't-lose bet. Their thinking: So what if the dollar is undervalued? It will probably go down some more, and Washington won't buy dollars to prop...
...Nestles says that morbidity data are lacking, and imply that there is not good evidence of an increased disease incidence in bottle fed infants. That' is patently untrue. There are dozens of studies which show a much higher disease incidence in bottle fed than in breast fed infants. No scientist or immunologist can deny the fact that human colostrum and breast milk contain substances which confer immunity on the infant and protect him from infections, and that infant formulas do not contain these substances. A study published last year in the prestigious Journal of Pediatrics showed a significantly lower rate...