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Nixon advisers predict economy
WASHINGTON (UPI)-Prices
for meat, fuel and other products
will keep climbing the first half of
1974 and taper off somewhat
during the summer and fall,
Chairman Herbert Stein of the
Council of Economic Advisers
predicted Sunday.
At the same time, Director Roy
Ash of the Office of Management
and Budget said the overall
economy will have rough going
during the first three months of
1974, but will demonstrate “fairly
good strength” the rest of the
way.
Stein, President Nixon’s top
economic adviser, said the
largest price increases would be
among products using oil and oil
by-products.
“I think we’re going to have
some big increases for a few
months, certainly,” Stein said.
“We think, although we’re not
quite sure of this, that we have
some months of fairly rapid rises
in meat prices ahead.”
He added that in the second
half of this year “we will enter a
period of fairly reasonable rates
of increase—something like 4 to 5
per cent.”
Stein was interviewed by U.S.
News & World Report.
Ash, in a taped interview for
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ciiHrnlri
the public television program
Washington Straight Talk, gave
this assessment of the economy
in general:
"...In this quarter, the quarter
that ends March 31st, we’ll have a
poor quarter. It won’t be very
good from the point of economic
statistics. On the other hand, we
believe that in the second and
third and fourth quarters
following that, there will be a
continual improvement in the
economy.”
He said first-quarter woes can
be attributed to the energy crisis.
"We are required to take some
very fast and quick actions to
readjust our distribution patterns
and our use patterns for energy,”
he said. “Once those have been
readjusted, then we think the
economy can go forward and go
forward with fairly good
strength.”
He predicted that “unem
ployment will increase,” but said
the administration is adopting
policies to contain the increase
“to a reasonable level.” He said
“during the year the average will
be...5 and a fraction per cent...
some place less than 6 at least.”
Stein said inflation this year
would be under the 9 per cent rate
of 1973, there would be no serious
slowdown in the economy and
the odds for a recession are “less
than 50-50.”
He said the odds had decreased
“because, in our view, the energy
crisis has become more
moderate in the last month.”
Stein assured questioners that
the government would intervene
quickly with fiscal and monetary
policy changes to head off any
serious recession. These policies
could include larger budget
deficits and faster expenditures
in areas such as defense.
UPI Roundup
Nixon postpones speech
WASHINGTON — President Nixon has decided to
postpone his State of the Union address for one day because
of a conflict with a long-scheduled congressional dinner, it
was learned Sunday. The President also scheduled meetings
with congressional leaders Monday to brief them on
developments in the Middle East. The rescheduling and the
meetings, coming just after the month-long recess,
suggested that Nixon was moving to improve his relations
with Capitol Hill where a number of members, returning
from a month-long recess, have begun giving opinions on all
sides of the impeachment question.
Bangladesh police halt opposition rally
DACCA, Bangladesh — Police and army troops ringing
Dacca’s Stadium Central Sunday used tear gas and baton
charges to prevent a mass rally of radical opposition JSD
party supporters. Hundreds of students went to a nearby
mosque and claimed sanctuary. From the mosque’s steps
they chanted slogans as troops stood by, unable to take any
action for fear of upsetting the Moslem population. Other
groups fled the tear gas and baton charges only to re-form
elsewhere. Dozens were arrested under the law banning
demonstrations in the Dacca area for three weeks. Mean
while, the ruling Awami League party closed its three-day
party council session Sunday with the appointment of
Commerce Minister A.H.M. Kamaruzzaman as party
president. Kamaruzzaman replaced Sheikh Mujibur Rah
man, the party chief since 1965, who said last Friday he
would give up the party presidency to devote more time to his
duties as prime minister. Sheikh Mujib, in announcing his
resignation at the opening of the council session, called on
23,000 delegates to rid the party of corrupters and take a vow
of honesty and service to the people. The mass rally Sunday
was called by the JSD National Socialist Party to protest
government policy.
Truckers set up picket lines
EAST LIVERPOOL, Ohio—About 300 independent truck
drivers, apparently dissatisfied with a six per cent hike in
iron and steel hauling rates, Sunday shut down their rigs and
set up picket lines. The drivers set up pickets along the road
from steel mills in Ohio, Pennsylvania and West Virginia.
Drivers said police cruisers Sunday escorted some trucks
through the area. East Liverpool police would not comment.
Gyro puzzles Skylab controllers
HOUSTON — Flight controllers puzzled over a con
tinually faltering stabilization device aboard Skylab 3
Sunday. The space station’s controlling gyroscope No. 2, one
of only two good ones still working to keep the lab in the right
position in orbit, momentarily slowed down twice Sunday. It
stumbled in its work three times Saturday, more than it had
ever done in one day before. Meanwhile, astronauts Gerald
Carr, Edward Gibson and William Pogue labored on with
biomedical, earth study and space engineering tests that
were occupying more than nine hours apiece. Engineers
theorized that the gyroscope during the past week could be
responding to the high temperatures the spacecraft has been
experiencing, caused by an unusual earth-sun angle that put
it in 74 straight hours of sunlight ending Friday. Tem
peratures have begun to cool now.