The Administration: Fait Accompli

As they faced reporters in brilliant sunshine on the L.B.J. Ranch, any lin gering hostility between Lyndon John son and Federal Reserve Board Chair man Martin seemed to evaporate like morning dew.

Only the day before, President John son had publicly expressed his "regret" over the board's 4-to-3 decision to raise the discount rate in order to counter in flationary trends (TIME, Dec. 10). As sembling his quadriad of top economic advisers — Treasury Secretary Fowler, Council of Economic Advisers Chair man Gardner Ackley, Budget Director Charles Schultze, and Martin himself—in Texas,...