Federal Reserve Chairman Arthur Burns recently told a congressional committee: "I cannot encourage the thought of lower interest rates in the immediate future." Burns' message: Even though short-term rates are rising fast, he will no longer use the jawbone on bankers to restrain them. Instead the Federal Reserve will work to cool the overheated economy and reduce inflation by restricting the availability of money and credit. Result: it is a tough time to borrow but a good time to save.
After the Fed raised its discount rate two weeks ago, banks boosted the prime lending...
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