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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.

(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

Brady, Ray;
Cronkite, Walter

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