Rockefeller Backs Caution on Interest Rate Rise
Federal Reserve Board Chairman G. William MillerÛªs resistance to a significant tightening of monetary policy Û¢;won endorsement' last night from ;Û¢ Chase Manhattan Bank Chairman ; David Rockefeller.</br></br>;Û¢ At the bankÛªs annual Washington ;!dinner-press conference, Rockefeller ; said Miller Û÷ correctlyÛ had opposed ! ÛÏdramaticÛ changes in Federal Reserve policy. For the first time in a series ;'of such press functions over the years, 'RockefellerÛªs remarks were on the rec-1 ord.'</br></br>I Miller has come under public and ; private pressure from Carter admini-j.stration officials to adopt a more aus-i tere money policy in order to signal a Û¢ continued commitment to fighting initiation.</br></br>I In a Washington Post interview and i similar statements to other pubhca-! tions recently. Miller has said that for the time being he sees no need to change the present policy stance of the Federal Reserve. He fears that too precipitious a move could create a severe recession. Û¢</br></br>Rockefeller said last night that he favored ÛÏa modest continued pressure on fnoney and credit,Û and that the economy could probably stand "a little more tightening before we relax.Û ÛÏIn going around the country, one sees a vigorous economy. So perhaps the economy needs a little further indication of [the wisdom] of slowing things down.Û