The Economy: Pressing Down the Prime

Despite only moderately strong corporate borrowing, U.S. bankers have been steadily edging up their prime rates on loans to businessmen. Higher rates could eventually lead to costlier consumer loans and mortgages, add to inflation and slow the economy by making businessmen more reluctant to borrow. Now members of the Administration's Committee on Interest and Dividends, headed by Federal Reserve Chairman Arthur Burns, are warning influential bankers in New York City and elsewhere to hold down their prime rate. The message, in some cases...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!