Nixon White House Tapes — Conversation 016-082
Date: Friday, December 10, 1971 at 4:36 PM
Participants: Nixon, Richard M. (President); Burns, Arthur F.
Recording device: White House Telephone
Source: https://www.easynixon.org/tapes/016-082

This transcript was generated automatically by AI (WhisperX) and has not been reviewed for accuracy. Do not cite it as authoritative.

[0:00] Hello.
[0:00] Dr. Burns.
[0:01] Yeah.
[0:01] Yes, how are you?
[0:03] Oh, Arthur, how are you?
[0:03] I'm fine.
[0:04] Yeah, you called me earlier, but I was in signing the tax bill.
[0:07] Yeah, I know.
[0:08] Look, I wanted you to know.
[0:09] That was a good result, too.
[0:11] We reduced the discount rate today.
[0:13] Oh, yeah, yeah, yeah, good, good.
[0:15] What is it now?
[0:16] Four and a half?
[0:19] We got it down to four and a half percent.
[0:20] Four and a half, yeah.
[0:22] And, and, uh...
[0:24] typically when we reduce the discount rate or make a change we merely say that we've made a change in order to bring the discount rate in line with market conditions right right this time we said that we're doing it partly for that reason but also to
[0:44] further economic expansion good good good that's what you put out in the statement we put out a statement on that and that'll be in the press tomorrow and i thought you'd be pleased good it's good and you know that comes the same day we signed the tax bill which is good right and i did that for another reason i'm having a meeting of my open market committee on tuesday oh you are i see and i put them on notice through this action that i want more aggressive
[1:10] steps taken by that committee on next Tuesday.
[1:13] Good, great, great, great.
[1:15] Well, you can lead them, you can lead them, you know.
[1:17] You know, you always have now, so just kick them in the rump a little.
[1:23] Okay?
[1:24] Look, another question, Mr. President.
[1:28] We're running into difficulty with the board.
[1:30] We're all right on monitoring credit policy, but on regulatory cases, and we sit as a court,
[1:40] The unregulatory cases, I have a divided board, and I need another board member promptly.
[1:48] Cheryl hasn't resigned.
[1:50] I know that.
[1:51] I've really been so tied up in this.
[1:54] I know that.
[1:54] Well, basically India, Pakistan, a few other things.
[1:56] But I'll tell you, I'll get at the thing just as quick as soon as we get back from...
[2:02] from the Pompidou, which will be Tuesday night, Tuesday afternoon.
[2:07] I'll get at that and see what the situation is.
[2:11] I know Malek is checking the thing out.
[2:14] He's got your fellow.
[2:15] He's got some various people, but I will get at it.
[2:20] I promise you.
[2:21] I just haven't
[2:23] come across my desk yet, or at least I've asked them not to give it to me because I knew I didn't have time to decide it.
[2:28] Right.
[2:29] Well, good.
[2:30] But I'll get at it, I promise you.
[2:31] You'll have some action next week.
[2:33] Thank you very much.
[2:34] All right.
[2:35] Let me wish you a very fine and successful trip.
[2:38] Well, let's hope for the best because this is, I was just talking to John Connolly, and we feel the French meeting is, and you know that too, is very important to the success of the others.
[2:49] Oh, yeah.
[2:49] So if we can break the logjam with the French...
[2:52] We don't know, but that's going to be, we feel, primarily a political decision on Pompidou's part.
[2:57] So that's what we're looking at right now.
[3:00] Well, I've done my very best.
[3:02] I've worked hard to prepare the French on trade issues.
[3:05] I know, I know.
[3:06] That's what John was saying.
[3:07] I've told the French.
[3:09] They've got to give us something.
[3:10] I told the French they can't get anywhere unless they do.
[3:14] Right, right.
[3:15] Well, I know that's good, too.
[3:18] I'm very tough with them.
[3:19] And we're going to present it that way to them, too.
[3:23] But you've emphasized to them that they can't get anyplace without giving something on trade.
[3:27] Exactly.
[3:28] Well, that's good.
[3:29] That's great.
[3:30] Well, we'll keep you posted.
[3:32] As you know...
[3:34] If anything breaks on this, it'll be of enormous importance to everybody, but John, of course, is all set to, if we get any sort of a break.
[3:44] The French announcement could be very important.
[3:46] It might not.
[3:46] I hope it will, but if we make a breakthrough, we'll be in touch with you immediately.
[3:51] Well, I hope...
[3:51] But don't expect it on Monday.
[3:53] We meet Monday and Tuesday.
[3:56] You know this will mean a great deal to the business community.
[3:59] They are...
[4:00] Yeah, they sort of already expected it.
[4:02] They're awfully worried.
[4:03] And when you get back, I want to sit down with you and talk about the pay board and the price commission.
[4:08] We have some very, very real problems.
[4:10] Yeah.
[4:11] I don't think we can delay very long in dealing with the pay board and the price commission.
[4:15] I see.
[4:15] Yeah.
[4:16] Mm-hmm.
[4:17] Okay.
[4:17] Well, we'll have a chance.
[4:20] You know what you're having?
[4:21] The payboard is going overboard with high increases.
[4:25] The price commission is being very, very tough.
[4:28] And business firms are being squeezed.
[4:31] This is holding back recovery.
[4:33] I see.
[4:34] I see.
[4:36] Well, we ought to talk about it when I get back.
[4:40] We better have that thing.
[4:42] I want to talk to John about it.
[4:45] You know, the Coastal Living Council sits there and is supposed to talk about these things.
[4:49] Well, you know, the Coastal Living Council, Mr. President, is not doing a damn thing.
[4:55] They come there with a bunch of deputies, they sit around, and they're not doing a thing.
[4:59] Now, that's perhaps a harsh description, but it's not very far from the truth at the present time.
[5:06] So you think there has to be a step in.
[5:08] Well, we'll get together when I get back, and that'll be next week.
[5:13] Yeah, because time is getting short.
[5:15] We want this economy going.
[5:17] Right, right, right, right, right.
[5:19] Okay, okay.
[5:20] We'll be back, and thanks a lot for calling.
[5:22] Yeah, bye.