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Economy #260770

CBS Evening News for Friday, Oct 26, 1979
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(Studio) Federal Reserve Bd. reported admitting error in estimation of nation's money supply.
REPORTER: Walter Cronkite

(NYC) Process by which board arrives at estimate, called "M-l" outlined; effects of board's error examined; graph shown. [Oct 6, board chairperson Paul VOLCKER - comments on excessive inflationary growth.] Effect of error on stk. market, increase in prime interest rates by major banks recalled. [October 10, CRONKITE - comments on Wall Street activity.] [Senator Banking Committee chairperson William PROXMIRE - comments on board's error.] Incr. in home mortgage rates due to error recalled; chronology of events in reaction to error given. Cost to consumers and investors by board's mistake noted. [PROXMIRE - comments.] [Economist David JONES - comments.] Volcker said refusing to comment on situation. Mfrs. Hanover Trust quoted with regard to error being theirs; quote transcribed in part on screen. Possible implications for Reserve Bd. from error considered.
REPORTER: Ray Brady

(Studio) Incr. in prime lending rate by Citibank reported Consumer prices for September and general increase in inflation for past mos. examined; Alfred Kahn quoted.
REPORTER: Walter Cronkite

Reporter(s):
Brady, Ray;
Cronkite, Walter
Duration:
00:05:40

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