Burns Urges New Attack To Stem Inflation Spiral
Former Federal Reserve chairman Arthur F. Burns warned Congress yesterday the nation no longer could afford a ÛÏgradualistÛ anti-inflation policy.</br></br>Speaking before President Carter outlined his latest anti-inflation plan, Burns told the Senate Banking Committee ÛÏit has become essential to rout inflationary psychology.Û</br></br>Barry Bosworth, former director of the Council of Wage and Price Stability, told the same committee the nation could expect a 20 percent inflation rate for several months to come and: an underlying rate of 10 percent or more for many years to come.</br></br>Burns, accusing Carter of giving only Û÷Û÷feeble lip serviceÛ to fiscal restraint with his budget for fiscal 1981, called for a balanced budget.</br></br>Any effective anti-inflation program, Burns said, should include an end to federal deficits, restrictive monetary policies that are binding and a reduction of business taxes.