Burns on Trade Problem: Carter Loses Either Way
Federal Reserve Board Chairman Arthur F. Burns yesterday warned) that there are ÛÏdisturbing manifestations of price pressures in our economyÛ even after accounting for the effects of the severe winter weather.</br></br>Burns also testified before the Senate Budget Committee that whether or not President Carter moves to protect industries like shoes and color televisions, he will be subject to severe criticism.</br></br>"My heart goes out to President CarterÛ on the trade issue, Burns said. ÛÏHeÛªs going to get it in the neck no matter what he does.Û</br></br>In wide-ranging testimony, Burns also reiterated his reservations about the economic stimulus package being put together by Congress and the President, but said that "such reservations . . . should not be interpreted to mean that the Federal Reserve will stop short of doing what it can to foster a satisfactory rate of economic growth this year.Û</br></br>He said President CarterÛªs goals of reducing unemployment to less than 7 per cent and reaching an economic growth rate of 6 per cent this year "appear to be entirely reasonable.Û But Bums said he is worried1 about a re-ignition of inflation, and he warned' that ÛÏsubstantial amounts of idle capacity and manpower provide little assurance that price pressures will not mount as the economic growth rate speeds up."