A Looser Fed

No fights, at least yet

When Reagan appointees gained a majority on the seven-member Federal Reserve board of governors last February, predictions abounded that the central bank would adopt a more stimulative monetary policy in an effort to pump up the economy. After all, the Reaganite faction would be led by Manuel Johnson, the current Fed vice chairman, who is a former Assistant Secretary of the Treasury, certified supply sider and onetime critic of the Reserve Board for being too tightfisted in its fight against inflation. So far, the new lineup seems to have done its job. Since last March the Fed has steadily reduced the...

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