President Carter Criticizes Recent Interest Rate Increase

President Carter, only two days after announcing his support for efforts to tighten the money supply, said yesterday the Federal Reserve Board (FRB) has raised interest rates too high.

Speaking to the leaders of the nation's construction unions in San Diego, Cal., Carter said he would not "fight inflation with your jobs."

He added that while the FRB has raised interest rates to record levels to cool inflation, he would take special financial measures to preserve credit for construction, especially the housing industry.

While Carter did not elaborate on these measures, he appeared to be talking about efforts earlier this year to allow savings and loans institutions to raise money for mortgage loans by offering saving interest tied to Treasury bill rates.

Senility?

However, Carter made no reference to his statements Tuesday, when he backed the FRB's decision to increase its bank lending rate and tighten the availability of credit in order to strengthen the dollar and moderate gold prices.

At the time he endorsed the FRB's actions, Carter said he would do "whatever it takes" to stop inflation, even if it hurts him politically.

Carter's speech was the focal point of a two-day Western trip, his first visit to the region in five months.