Cooling Inflation May Curb Interest Hikes, Brady Says
Treasury Secretary Nicholas F. Brady said today that inflation seems to be cooling off and suggested there may be no reason to raise interest rates further.
Although the White House and the Federal Reserve have sometimes squabbled in recent months over the inflation threat, Fed Chairman Alan Greenspan indicated Wednesday that he, too, wants to wait and see what impact the central bank’s recent credit tightening will have on the economy.
In a speech to the National Assn. of Manufacturers, Brady acknowledged differences of opinion but said the Administration is as determined as the Federal Reserve to curb inflation.
“It is possible to have different interpretations of the same economic statistics and still share the same goal of fighting inflation,” he said.