Business: Warning on Prices

Discarding its usual veil of silence, the staid Federal Reserve Board last week issued its harshest criticism of U.S. price-boosting heard in recent years. Up before the Senate antitrust subcommittee stepped the Fed's research director, Ralph A. Young, with the charge that industry's price hikes—notably in autos and steel—cut demand and employment even further during the recession. Industry, he said, "needs to use more often the time-tested prescription of lower prices as a cure for inadequate demand and to resort less to appeals to Government.

Young's testimony was doubly significant because it came just after disclosure of a statement by the Administration's...

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