For Dollar Seen, Fed Chief Says
Kcdcral Hehwve Board chairman Arthur F. Burns told Congress yesterday that the government has. intervened in foreign exchange markets In support the dollar ÛÏon a minimal scale only" and does not plan to try to support I lie price of the dollar unless the situation changes dramatically.</br></br>Burns, testifying before the House Banking Committee, told chairman Henry S. It cuss (D-Wis.) Ilial. the soundness of the American dollar is important to the Federal Jicserve. lie said, however, that the central bank has neither conducted domestic monetary policy nor intervened in foreign exchange markets with a view to pushing up the international price of ihe dollar.</br></br>Burns said that the Fed does not intervene in foreign exchange markets ÛÓ buying dollars with foreign currencies to boost the demand for dollarsÛÓwithout consulting with the Treasury Department, lie said the government has no intention of changing its policy on inter- jij *)fyW>"cy naiTOts^uJipry'cWrin^ÛªAiWlfw *v/u.. Burns said. "But no two of us may ]jc saj{| y1(, central bank lias made perhaps agree as to the precise dcfinbasieally no change in its targets. The tion of an orderly market. When I sebirget for the basic money supply (M-the dollar depreciating against currcipÛÓ'Checking accounts plus currency cies of economies demonstrable1 circulationÛÓwas changed lrorii a</br></br>weaker than ours, 1 sometimes asfeå¡ ^n4'5'K^M,U Û÷å¡ 6?pcr?fin<to ...........	Ûª	, . . C per cent to G.5 per cent. currencies, meaning that imports 1>11^ P0,nt from he iower range of the come more expensive and exports lcsfe11^ ni('ani little to the agency s op-expensive. Part of the dollar's slide iå¤r3iititf stance.	... .</br></br>due to big balance of trade deficits I'or which adds savings depos-tlic nation has chalked up in rcccniJs at commercial banks to M-l, the months.	Fed's	goal is unchanged: a range from