ABSTRACT
Dwight D. Eisenhower insisted on strict observance of the Fed’s independence, but it was essential that there be some coordination between its actions and the administration’s overall economic policy. Raymond J. Saulnier became Chairman in late 1956 as rising prices made inflation the major concern of administration economic policy. The 1959 Economic Report reviewed the 1957–58 recession and recovery but again the administration’s primary concern was inflation. While critics felt that the economy had not sufficiently recovered from the economic downturn to merit a shift to antiinflation policy, the administration was alarmed over the fact that inflation had continued throughout the recessionary period. Eisenhower and his economic advisers were also concerned that continued inflation and government deficits would undermine foreign confidence in the dollar. The 1960 Economic Report and the JECTs Report again reflected partisan disagreement over the goals of stability and growth.
