Burns Says Goals Same: Growth Policy Set At 5-7.5%
Federal Reserve Chairman Arthur F. Burns told Congress today the board will keep following the same money growth policies for the next year that it has pursued in recent months despite pressures for expansion.</br></br>Anything higher than a growth targtet.of 5 to 7.5 per cent. Burns told the Senate Banking Committee, could help to set off a new round of inflation. He called it ÛÏthe only responsible option.Û</br></br>There has been pressure in Congress on the Federal Reserve Board to increase its money growth targets to as much as 10 per cent a year, in hopes of promoting a faster recovery from recession.</br></br>Burns said the Federal Reserve recognizes that monetary policy ÛÏhas an important role to play in maintaining a financial environment that is favorable to sustained economic expansion.Û And he said.the boardÛªs money growth targets support this role.</br></br>Burns said the board is following a course ÛÏthat will provide expansion in supplies of money and credit adequate to facilitate further good recovery of production and employment, but not so large as to rekindle the fires of inflation.Û