MONEY: Inflationary Interest

For most bankers and businessmen, nothing seemed more certain two months ago than a continuing slide in interest rates. That conviction was nurtured by expectations of a slackening economy, the energy crisis, wilting loan demand and a less restrictive money policy by the Federal Reserve Board. To the astonishment of most experts, inflation has made hash of those predictions; both long-and short-term interest rates are scooting back up, some to record highs. Soaring loan costs are now hurting businessmen trying to finance expansion programs, municipalities seeking public improvements and millions of...