Bombarding Reagan's Budget

Wall Street takes a dive as the President's men duel over monster deficits

Ronald Reagan's 1985 budget took a thunderous shelling last week. Day after day, jittery Wall Street investors fired sell orders, hitting stock prices with their heaviest declines since 1982. Testifying in Washington, Federal Reserve Chairman Paul Volcker fired the single most damaging salvo by warning that the deficits envisaged in the budget pose a "clear and present danger," threatening to keep Interest rates high and tip the economy into a new recession. Vote-conscious Congressmen attacked the budget from all angles....

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