Reserve Aide Hints More Credit Easing
Alfred Hayes, president of the Federal Reserve Bank of New York, hinted yesterday that the Government may undertake new moves soon to ease credit and give the economy a shot in the arm.</br></br>He said the economy might remain prosperous for the nex year or two or economic activity "might go down.Û | ÛÏWe , would be less thanj frank if we did not state that there is some -risk, even though we trust it is of low) probability, that the economy! may continue downward for a' time,Û he said.	j</br></br>Chairman Wright Patman (D-Tex.) asked whether the Federal Reserve BoardÛªs recent decision to cut interest rates on money loaned to commercial banks would be followed by other moves to ease) credit. .	j</br></br>Hayes replied that such action ÛÏusually is related" to action by the Federal Reserve1 SystemÛªs open market committee. The committee, by buying or selling Government bonds, can expand or contract reserve j funds available for lending by banks.	j</br></br>ÛÏnot freeÛ to give a specific: reply, however, because of the| practice of monetary authorities to refrain from talking about current actions, ÛÏparticularly when they are on the [ire so to speak.Û Û¢ate from 2Vz to 3 per cent ast Thursday was the first re-axation of the AdministrationÛªs controversial tight noney policy.