Head of ABA Says Rate Of Interest to Fall Soon
CHICAGO, Oct 7ÛÓThe outgoing president of the American Bankers Association predicted today that interest rates, including the prime rate, have peaked and will soon come down.</br></br>1 Eugene C. Adams, who is chairman of the First National Bank of Denver, also told newsmen here that he was sorry that Congress last week ordered that interest ceilings be put on all consumer-sized certificates of deposit. He also said he fell sure the Bankers Associa-</br></br>Last week the House Banking and Currency Committee reported to the House floor a bill requiring the General Accounting Office to audit the Federal Reserve Board and the Federal Reserve system, Adams said such an audit would undermine the independence of the Fed, which sets monetary policy for the nation.</br></br>Speaking to reporters at the opening of the Bankers Annual convention here, Adams said that the prime lending rate can be expected to fall soon. That rateÛÓthe one banks charge their best corporate customers for a short term loanÛÓ has been at a record high 10 per cent for nearly a month.</br></br>In the last two weeks, however, other short term interest ratesÛÓsuch as those on commercial paper, large-sized certificates of deposit and Treasury billsÛÓhave declined substantially.