Fed Gets Tough Against Inflation
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^fgannwyage: Eagle to sail to Australia / page 4 | Hai^wit; Teen-agers bring noise, traffic to v^anaaa Cup; Accent on speed tonight / page 9 | Parkade / page ii anrhrstrr HrralJi Manchester — A City of Village Charm Friday, Sept. 4,1907 30 Cents S :> ’t Ex-principal r j i ^ ' Fed gets tough r 1 /* ^ ^ J r better known I-X* against inflation as a farmer E Increase in discount rate Bv Jacqueline Bennett Herald Correspondent will push interest rates up COVENTRY — For years, Clarence Ed mondson has been well-known as Coventry’s WASHINGTON (AP) - The for foreign products. resident pumpkin farmer. Each October, the Federal Reserve, signaling a tough The Reagan administration, be P Eklmqndson farm on Route 44 becomes a stance against Inflation under new ginning in September 1985, pursued celebration of Halloween and autumn, with Fed Chairman Alan Greenspan, a policy of pushing the dollar lower pumpkins in every shape and sise. announced today It was Increasing as a way of reducing the huge U.S. For just as many years, however, Edmond Its discount rate, the Interest It foreign trade deficits. Administra son, 54, has been moonlighting as the principal charges on loans to U.S. financial tion officials hoped that higher of George Mersey Robertson School. He Institutions, from 5.5 percent to 6 costs for imports would reduce retired this summer. percent. Americans’ appetite for foreign “ I grew up on this farm, this house was the The Increase, the first In more products while at the same time barn.” said Edmondson during a recent than three years. Is effective making U.S. products more com interview at his home. Immediately. petitive on overseas markets. Soon after he was bom in 1932, his family In a brief statement, the Fed said While this strategy appears to be moved from Manchester to Coventry. “My Its decision “reflects the Intent of working, the turnaround took much four brothers and I worked our way through the Federal Reserve to deal effec longer than expected and has a college milking cows — we were poor," he tively and In a timely way with downside of Increasing inflationary said. potenUal Inflationary pressures.” pressures in the United States. He and his wife, Nancy, have been married The last Increase In the discount Economists had said that one of for 30years, and have threechildren: Paul, 27, rate came on April 9,1984, when it the key problems Greenspan would Peter, 26, and Bonnie. 23. moved from 8.5 percent to 9 face In his early months as Fed In the spring of 1954, “ Coy” as he is called by percent. Since then the rate has chairman was what to do to defend his friends, graduated from Willimantic State been cut seven successive times, the dollar if it began falling again. Teachers College, now Eastern Connecticut with the last reduction occurring a Economists said the financial State University. That fall he began as a year ago on Aug. 20, 1988, when it markets would be closely watching fourth-grade teacher at Robertson School. - dropped from 8 percent to 5.5 to see whether Greenspan acted to percent. “ I taught the afternoon session. I had 36 T: tighten credit conditions to dispel students and shared a room,” said Eldmond- The boost In the discount rate was any fears that he might not be as son. "We’ve come a long way since then.” likely to push a variety of Interest independent of political pressures Edmondson served two years in the U.S. rates, including mortgage rates, from a Republican White House as Arm y, then returned to the Coventry school higher in the weeks ahead. Voicker was. system. He has been principal of George The announcement by the Fed on Mersey Robertson School forfll-years. the dlaoeunt rags was fsHsyed ' almost imniediafely By Announce Though he pursued a career in education, ments by two large New York Edmondson farmed so he would have money banka. Chase Manhattan Bank and to send his children to college. In addition to KWore work <%emical Bank, that they were the pumpkins, the Edmondsons also raise raising their prime business lend strawberries and raspberries. 1 ing rates one-half percentage point He admits he fell into teachingand farming, but Jobless to 8.75 percent from 1.85 percent. but ended up enjoying both, 4 “The last three to five years as principal The Increase in the discount rate have been the most exciting,” he said, his eyes came after a three-week slide in the Hsrald photo by nmo rate steady lighting up. “ We brought in a new language value of the dollar on foreign currency exchanges. Many ana program to help children with learning Clarence Edmondson of Coventry shows off one of the pumpkins on his te disabilities. We also began new math and lysts had expected the Fed would be ....WASHINGTON (AP) - The to forced to act to stabilise the falling writing programs.” farm on Route 44. Edmondson retired this summer as principal of number of Americans working S( There have been some frustrations, he Coventry’s George Mersey Robertson School. dollar by pushing up interest rates swelled by more than a third of a In the United States. million last month to a record 113 acknowledged, including the public opposition a( Higher rates In this country make million, but the unemployment rate to building new schools and long overdue tendent. “ He brought in a lot of programs, — instead I ’m painting the house.” he said this dollar-denomlnated investments held steady at 8 percent due to a T raises for educators. language, math, and reading. He is liked by a week. more popular with foreigners, who nearly Identical rise in the labor ni It is apparent the decision to retire was a large number of staff and parents, and he will “ The kids are alt grown now, so we’ll now hold a sixable percentage of force, the government said today. a difficult one for him. Edmondson said he will be missed.” probably cut back on the raspberries and U.S. debt. Some 354,000 more Americans n most miss his “ dedicated and talented staff, - Edmondson plans to use his retirement to strawberries.” said Edmondson, as he This interest rate scenario is took home a paycheck in August and the children.” get some things done that he couldn’t g^done admired a hummingbird in his garden similar to what happened last than In July, but the civilian labor 01 “ I have worked with him since m y arrival in before, and continue farming. ^ outside. “ But the pumpkins will still be there spring when investor worries about force — those either working or V i 1984,” said Nathan Chester, school superin- “ I ’d have been starting back to work today in the fall.” Inflation caused the dollar to actively looking for jobs — grew by A decline on foreign exchange 350,000, the Labor Department markets. This led to a slump In bond said. ei markets that pushed Interest rates ’The number of jobless workers S i sharply h li^r. fell last month to 7,221,000, a Ji The Fed's decision to raise the decrease of 3,000 from July, when It ai Iranian missile falls near tanker discount rate was approved on a 4-0 had reached the lowest level It had 81 vote with two board members, been since April 1980, the Bureau of said Kuwait-based shipping n MANAMA, Bahrain (AP) - A reported that the Italian Cabinet considered one of the most serious Martha Seeger and Robert Heller, Labor Statistics said. officials. ■Silkworm missile fired from decided today to send a naval task threats to gulf shipping in Iran’s absent. Over the past 15 months, the There was no official confirma h Iranian-held territory landed just force to the gulf, including mines arsenal. The action was the first signifi jobless rate has gradually edged Its tion of the reported attack on the two miles from U.S.-flagged Ku weepers and escort ships. Shipping sources said the missile cant move the central bank has way down from 7.2 percent without f( Saudi Arabian ship. The shipping waiti tankers today, hours after a In Baghdad, a military commu hit two miles from the Al Ahmadi oil made since Greenspan replaced a single blip upwards. The last time 8 sources, speaking on condition of Saudi vessel was attacked in the nique said Iraqi warples blasted loading terminal, where the two Paul Voicker as chairman on Aug. the unemployment rate was lower G Persian Gulf and two of its anonymity, said seven crewmen three Iranian oil installations si reflagged Kuwaiti tankers were 11. was in November 1970, when It crewmen killed, sources said. were wounded in the attack Thurs multaneously in southern Khuzes- anchored, and one mile from Mina An Increase in the discount rate Is stood at 5.9 percent. Cl A senior official of a gulf nation day night. tan province. al-Abdullah, Kuwait’s main ship the most dramstic move the central An alternate rate that includes 1.7 H government said the Silkworm was The reported attack came as The missile attack at the north ping port just south of the oil bank can make to signal its million uniformed members of the w another convoy of U.S. warships fired from Iranian-occupied terri ern extreme of the gulf was the first terminal. intentions to push rates higher as a armed forces stationed In the n and Kuwaiti tankers steamed south tory in southern Iraq and that it fell reported use of the Chinese-built The official, who refused to have way of keeping a curb on inflation United States in the calculations 01 harmlessly in waters oH the coast through the gulf.