Treasury Secretary James A. Baker III said...

Treasury Secretary James A. Baker III said the Reagan Administration generally does not wish to see higher interest rates but that small increases now might help prevent larger hikes later. “Sometimes, it’s important that the world economy know that central bankers and central banks are minding the store,” Baker said at a conference sponsored by the U.S. Information Agency. With the nation’s major banks having just raised their prime interest rates to 9.25%, the highest level in 18 months, and amid reports that the Federal Reserve Board might act soon to tighten credit further, Baker said: “Nobody likes to see interest rates go up but we don’t like to see inflation come back either.”