Reagan plans ‘extreme’ action

Press, 30 December 1980, Page 6

Reagan plans ‘extreme’ action

NZPA-Reuter Washington Ronald Reagan wilt introduce a comprehensive economic programme soon after taking office as President that will include stimulative tax cuts, and extreme measures” to reduce Government spending, his top adviser has said.

Mr Reagan’s transition director, Edwin Meese, said thit President-elect Reagan would dwell on the serious state of the economy in his inaugural address on January 20 and would introduce his plan for dealing with the situation.

As part of these economic measures, he said, Mr Reagan was considering a meeting with Paul Volcker, chairman of the Federal Reserve Board, the United States central bank, either just before - or after _ his inauguration to discuss the

issue of stabilising the money supply. Asked on the C.B.S. television programme “Face the Nation” if this would be interfering with the board, Mr Meese said, “There’s no reason why. people, with authority in a particular field can’t talk about how they can best handle the situation. ' • , “The fact that the Presi- ' dent will communicate the comprehensive programme ... will be r helpful to the 1 Fed. in determining their own money supply policy.”- ! Mr Meese said that the Reagan Administration intended carrying through with the guarantee pro- ■ gramme begun under Presi- • dent Carter ,to save Chrysler corporation, but he said he could foresee circumstances iin which the ailing car maker, now pressing for • more loans, might not be saved.