Inside Report (6)
President Reagan is trying to coax Wall Street from behind its pile of ticker tape. The administration believes Wall Street is being "stampeded" by scare talk about a deficit jump from $42.5 billion to $60 billion. Wall Street feels this would add to the demand for money, boosting interest rates. But the administration is confident its tax cuts and business incentives will reduce business need to borrow -- through an extra $10 billion in unexpected cash flow, and an addition of at least $20 billion in personal savings to the nation's $550 billion saving pool. Thus, the adminstration says the economy can easily sustain a $42.5 to $60 billion deficit, and still expect interest rates to drop.
Wall Street, are you listening?m