Economy 'Turning,' Burns Says: Reserve Board Policies Defended
Federal Reserve Board Chairman Arthur F. Burns said yesterday the U.S. economy is in a "turning zoneÛªÛª in which there are many signs of economic improvement and returning confidence,</br></br>Burns also strongly defended the boardÛªs monetary policies as a "responsible middle courseÛ between the dangers of recession and inflation.</br></br>As evidence of economic recovery, Burns cited an increase of 200,000 in building permits issued in the nation in April, gains in retail trade and employment and an increased flow of money to savings institutions, ÛÏWe arc now in the act of unwinding the inflation," he said, warning that inflation continues at a "disconcerting pace.Û One result is a depressed housing industry, as high interest and mortgage</br></br>He said the Federal Reserve Board is looking toward an eventual recovery that would push economic growth above 5 per cent a year.</br></br>The board has been in the thick of economic controversy for some time. Critics claimed it did too little to curb inflation and then too little to fight recession. One sign of board sensitivity to the criticism came yesterday when Burns indicated he would "consider sympatheticallyÛ proposals to include a consumer- or labor-oriented member on the Board of Governors.