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...
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