Keep Focus on Inflation, CEA Nominee Urges Fed: Backs Fed on Inflation Fight
William Poole, President ReaganÛªs nominee for the Council of Economic Advisers, said the Federal Reserve Board should continue to aim monetary policy at fighting inflation and should not abandon its monetary targets despite recent distortions in the money numbers.</br></br>Poole, a monetarist economist from Brown University, said at his confirmation hearing before the Senate Banking Committee yesterday that he is not greatly concerned with short term deviations of the money supply frorjl the FedÛªs target. The longer such'deviations continued, the</br></br>Some administration officials have; complained that the Fed recently; has allowed the money supply to; grow too rapidly. However, CEA; Chairman Martin S. Feldstein has; supported the FedÛªs decision to allowJ above-target growth in the key Ml* measure of the money supply, which-includes currency in circulation and* money in checking accounts.</br></br>Feldstein was criticized at yester-," dayÛªs hearing for refusing to appear before another congressional committee during the lame-duck session.' Sen. Paul Sarbanes (D-Md.) said See PIJOLE, D12, Col. 3</br></br>FeldsteinÛªs letter of refusal to testify before the Joint Economic Committee was an "outrageous responseÛ to the invitation from Committee Chairman Henry Reuss (D-Wis.). Feldstein has a recess appointment andjs yet to be confirmed by the Senate.'ÛÏIf and when [his confirmation] comes up on the floor I think this record should be and will be a matter for debate,Û Sarbanes said.