Interest Rates in the Clouds

Expensive money becomes the newest double-digit menace

On the campaign trail last summer, Ronald Reagan promised that, as President, he would see to it that interest rates came down and stayed down. His pledge is already something of an embarrassment around the White House. Instead of declining, as Administration economic officials have been predicting all spring, interest rates have continued to hover at near record levels, weakening businesses, slowing growth and making a mockery of economic and budgetary planning by companies large and small alike.

Last week the Administration officially admitted that its optimism...

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