Baker Hints Higher Interest

Treasury Secretary James A. Baker III suggested today that interest rates in the United States, rising steadily in recent weeks, may have to creep up some more to “stop an awful lot of movement later on.”

While insisting that the Reagan Administration generally opposes higher interest rates, Baker appeared to signal support for further efforts by the Federal Reserve to tighten monetary policy if needed to quiet fears of a resurgence of inflation. Some analysts suggested Baker’s remarks might be a forewarning of an imminent move by the Fed to boost interest rates again.