Economist Sees Menace of Inflation In Over-Hasty Action to Halt Slump
Congressional economic ex ports warned last night against, over-hasty action to reverse, the business skid. They saidj a delayed effect from the de ' fense speed-up may touch ofT a new spiral of inflation.	I</br></br>The warning came from a House Senate Kconmnic Sub , committee headed by Hep, Willnir I). Mills (I) Ark.). Mills also is chairman of the House Ways and Mentis Committee which initiates tax legislation.</br></br>The siihcommit tec based its findings on extensive bearings into the relationship .if Fed oral spending to the national economy action to olTsel currently developing slack in employment and plant equipment use should take account, of the possibility of a delayed increase in defense outlays.Û</br></br>II said (Government moves should he confined to actions to increase (lie availability of money and credit. It said such action could he ^quickly reversed should inllai ionary pressures again become dominant Û</br></br>budgetary and economic trends well might require at1 a subsequent, date tax in-' creases or reimposition of sc-, j '1'he subcommittee said the' ,eiirrent rise in defense spend--ing may not he immediately j reflected in tin* economy. But it said this factor must not be disregarded in formulating fiscal policy.	I