Miller Criticizes Recession Talk By Economists: Small Rise in Jobless Rate Seen by Chairman
The chairman of the Federal Reserve Board predicted yesterday that unemployment will rise moderately next year as the economy slows down, but said there is no evidence that a recession will occur ÛÏunless we talk ourselvesÛ into one.</br></br>G. William MillerÛªs prediction of an increase in unemployment next year is at variance with the official administration position.</br></br>Officials such as Charles L. Sehultze, chairman of the Council of Economic Advisers, say the economy will grow 3 percent or slightly more in 1979, fast enough to keep the unemployment rate from rising above 6 percent where it has hovered most of this year.</br></br>Miller said that because of actions already taken to fight inflation and to support the dollar, the economy will grow between 2.5 percent and 3 percent in 1979.</br></br>The projected growth, Miller said, may result in ÛÏsome modest increase in unemployment,Û but It also provides time to combat inflation without experiencing big increases in demand pressure.