Even though the Federal Reserve has been squirting money into the U.S. economy all this year at a clip ordinarily fit to make loans grow cheaper, the result instead has been a persistent rise in interest rates. Last week American Telephone & Telegraph Co. borrowed $250 million for 33 years at the highest interest cost it has ever paid for long-term bonds: 6.006% a year. A. T. & T.'s old record, 5.95% for $100 million of 20-year debentures, had stood since 1923.
The new mark may go unchallenged for quite a while. If Congress heeds President Johnson's call for a...
To continue reading:
or
Log-In
