David Kennedy Prescribes 'Very Tight' Budget
David M. Kennedy, the next Secretary of the U.S. Treasury, yesterday prescribed a ÛÏvery tight" Federal budget as the cure for inflationÛÓa remedy that he concedes will produce ÛÏsomewhat higher" unemployment in the Nation.</br></br>Kennedy, who will step down as board chairman Chicago's Continental Illinois National Bank and Trust Co. to join President-elect NixonÛªs Cabinet, appeared before the Senate Finance Committee</br></br>Inflation, he said, is the central problem of the economy and ÛÏI think it's very important that we have a very tight budget on the expenditure side.Û ÛÏThe effort would be to take the inflationary steam out of the economy with a minimum of increase in unemployment,"</br></br>Kennedy said. But, yes, he added, unemployment would "surely be somewhat higher than the present rate."</br></br>How much higher is an impossible question at this point, the Secretary-designate said. "I don't like to get into percentages because youÛªre dealing with human beings,Û he said.