GOVERNMENT: Rift with the Fed

Treasury Secretary Robert Anderson won his first victory last week in his campaign to remove the 4¼% interest-rate ceiling on long-term Government bonds. The House Ways & Means Committee approved a bill to permit the President to ignore the ceiling when necessary to sell bonds. The committee tacked on an amendment expressing the "sense of Congress" that the Federal Reserve Board should expand the nation's credit supply by pegging the price of Government bonds. Cried Fed Chairman William McChesney Martin Jr.: "This is an attack on the independence of the Federal Reserve Board. This is a directive for printing-press...

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