Business: Money: Past the Peak?

"I hope the economic environment and financial conditions will prove so stable as to make another increase in the prime rate unnecessary." So Chairman John J. McCloy of Chase Manhattan Bank last week told stockholders. McCloy had plenty of evidence that the months-long climb in money costs, which has carried the prime rate to 5%, highest in nearly 30 years, has spent its force. At its usual weekly auction of 91-day bills, the Treasury was able to sell at a yield of 4.12%, down from 4.44% a week earlier and half a point under the high of 4.67% in December. In...

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