This Day In 1970's History: Thursday February 3, 1977
- Arthur Burns, the Federal Reserve Board's chairman, told the House Banking Committee that he disagreed with the timing and size of President Carter's economic stimulus program. He said that he believed the economy was "improving on its own," and that it was not clear that "any stimulus is needed at all." He was especially critical of the administration's proposal to give a $50 tax rebate to most people. He said "the Treasury does not have the money." [New York Times]
- More natural gas will be piped from the Southwest to New York and other Eastern markets under an order by Richard Denham, chairman of the Federal Power Commission, who made first use of the emergency energy powers signed into law Wednesday night by President Carter. [New York Times]
- A feeling was growing in the natural gas industry that President Carter's emergency gas bill would not provide much help for the industry. [New York Times]
- The largest retail chains reported strong sales gains in January over the same month last year, despite the extreme cold. The series of healthy reports was led by Sears, Roebuck, which had a 14.1 percent rise over January 1976, its best monthly gain since July 1973. The increase would have been 1.4 percentage points higher if the weather had been better, Arthur Wood, Sears' chairman, said. [New York Times]
- The Dow Jones industrial average declined to its lowest level in two months, 5.65 points to 947.14. It was below the 950-960 band regarded by technical analysts as an area of support for stock prices. Credit markets made their first big advance of 1977, apparently cheered by Arthur Burns' testimony in Congress on the economy, and President Carter's television talk Wednesday night. The Treasury, meanwhile, sold $2 billion of seven-year notes at an average interest rate of 7.25 percent. [New York Times]
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