Economic Spotlight On White House Amid Rising Interest
The Register reports a week of heightened focus on White House economic policy amid rising interest rates and inflation. Nixon met with congressional leaders as wholesale prices rose 2.1 percent in May and banks hiked prime rates. The Fed raised the discount rate to 6.14 percent, and business investment is seen rising 13.2 percent to 110.12 billion this year. The piece notes large stock fraud cases, gas deals with the Soviets, and stock market gains despite investor caution.
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Rates And Prices Rally Amid Inflation Watch
The Dow Jones average fell about 45 points as Big Board volume reached 66.61 million shares. Advancing issues led 981 to 734, with analysts citing technical factors after a weak week and Monday. Optimism rose on reports the Nixon administration prioritizes inflation, even as the wholesale price index for May jumped 24 percent. The market remains in a technical 880 to 920 range.
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Status of Major Legislation in Congress This Week
The AP summary lists major bills: vetoed $2.6 billion vocational rehab. vetoed $120 million rural water grants. elderly aid programs enacted. rural electrification extension enacted. price and rent controls enacted. Senate confirmation of OMB Director veto sustained. Awaiting final action: $18 billion highway, and denial of funds for US actions in Indochina. Other items include cabinet confirmations, impoundment curbs, tax law revision, trade authority, education extensions, law enforcement aid, foreign aid, press protection, and a $885 billion defense appropriation.
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