The Economy: The Rate & Its Ripples


For all the political turbulence it provoked, the Federal Reserve Board's move to fight inflation by raising the price of money is not likely to damage the greatest economic expansion in U.S. peacetime history. After an emotional dip at week's start, the stock market expressed its confidence in continued prosperity by rallying to close the week with a 6.6 point gain (to 952.72) in the Dow-Jones industrial average. Most businessmen seemed to approve of the discount-rate rise, even though it means a higher cost for their loans. It was, said Ford President Arjay Miller, "the right move at the...

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