Economic Slide Will Continue, Stein Believes
Economic Council Chairman, Herbert Sfein testified yester-: day that the nationÛªs economic j slide ÛÏwill probably continuej for some months more,Û but j warned that ÛÏpumping up the economyÛ would only bring on a renewal of inflation.</br></br>In hearings before the Congressional Joint Economic Committee, Stein predicted that a forthcoming Federal Reserve Board report would show a sharper drop in industrial production for January than the 0 5 per cent dip in December.</br></br>He also predicted a further rise in unemployment from the January figure of 5.2 per cent, an additional slide in construction activity, lower corporate profits and a contin-j uing decline in automobile j production.</br></br>SteinÛªs colleague on the council, Gary Seevers, painted a bleak outlook for food prices, predicting ÛÏa further substantial rise early this I year,Û followed by a measure of stability ÛÏor at least a rise at a slower rateÛ in the second half of 1974. Seevers saw re-! newed problems in beef prices' and supplies until well into' the year.</br></br>ÛÏThis is the gloomiest statement we nave had before us from any recent CEA report,Û said Sen. William Proxmire (D. Wis.). who charged that the administration had offered j ÛÏno effective prescription" to1 deal with economic problems.