Volcker warns deficits may keep rates high
Federal Reserve Chairman Paul Volcker said towering deficits could sustain high interest rates, calling last week's rise a small bump driven by budget concerns. He testified before the House Banking subcommittee that inflation is under control and no repeat of last year's severe tightening is expected, though he warned markets are unpredictable.
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Washington
UPI
Federal Reserve
Paul Volcker
Volcker
House
House Banking Subcommittee
Fed
Volcker Warns on Deficits Fueling Inflation or Recession
Volcker argues that high interest rates reflect policy constraints and that large budget deficits threaten the economy. Markets fear inflation if the government prints money or a recession if borrowing crowds out private investment, reducing private financing.
MENTIONED IN THIS ARTICLE
Volcker
Socialists form government in Italy with Craxi premier
Bettino Craxi formed a coalition government as Italy's first Socialist premier in 37 years. The five party coalition includes Christian Democrats, Socialists, Social Democrats, Republicans and Liberals. Craxi presented his cabinet to President Sandro Pertini and promised swift crisis resolution.
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Rome
Bettino Craxi
Socialist
Sandro Pertini
Christian Democrats
Italy
Craxi
Socialist Party
Pertini
Amintore Fanfani
Fanfani
No. 2
Communists
Italian Social Movement
Destruction of Pershing 2 missile after loose port flaw
An Army investigation found a 1 inch cast iron sector came loose on a Pershing 2 missile during a July 27 test, causing a thrust reversal port to open early and force destruction of the $2 million weapon. The failure was the fourth in 16 tests, but deployment in Western Europe remains slated for December with corrective steps planned.
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Cocoa
Fla
Europe
Harris
Huntsville
Ala
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DEYS
Allied Stores
Housewares
Army Missile Command
David Harris
Onbank
Htar
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Rohie
Rea Olin
Mart
Onondhiga Savings Bark Ep
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