JFKWHP-AR7225-A: President Kennedy Stands with Members of the Council of Economic Advisors (White House Cabinet Room), 10 May 1962

It was learned that Labor Secretary Goldberg expects to share in the shaping of the Kennedy Administration’s economic policy beyond the confines of matters that are purely "labor." (1:67) – January 23, 1961

West Germany is moving toward making an offer of $1,200,000,000 in payments of various kinds as its contribution to the solution of the balance-of-payments problem perplexing the United States. (1:5) – January 24, 1961

Government officials expressed disappointment at the contribution that West Germany is prepared to make toward a solution of the United States balance of payments problem. (1:7) – January 25, 1961

The Kennedy Administration made it clear that there would be few changes in the $80,900,000 budget inherited from the Eisenhower Administration. However, Budget Director Bell left the way open for major increases if necessary. (1:5) – January 26, 1961

President Kennedy sat dawn with his Cabinet for the first time. The President indicated his Administration would move swiftly to check the economic decline and assist millions of unemployed, and scheduled a major conference for today toward that end. A likely move was said to be the extension of compensation for the idle, many of whom have exhausted their benefits. (1:8) – January 27, 1961

President Kennedy met with his Treasury, Labor, and Welfare Secretaries and the Chairman of the House Ways and Means Committee, and afterward it was indicated he would ask Congress on Monday for an immediate temporary injection Federal funds into unemployment compensation. The money would be in outright grants to the states for payments to those idle whose benefits have expired. Their number is about half a million. (1:1) – January 28, 1961

In Bonn, the West German Government announced it will offer a one-shot payment designed to ease the balance-of-payments problem troubling the United States. Indications are the amount has been shaved to just under $1,200,000,000. – January 31, 1961

To brake the sliding economy, President Kennedy proposed aid to the long-term unemployed, tax incentives for business expansion, stimulation of new exports, and curbs on duty-free imports by returning tourists. He pledged not to devaluate the dollar. He anticipated a budget deficit. (1:8) – January 31, 1961

Mr. Kennedy also announced at his news conference several steps to counter the recession, including food-stamp projects in five particularly depressed areas, accelerated payment of G.I. life insurance dividends and a number of stimulants for housing and other construction. But he said he had no present intention to seek tax cuts. (1:6) – February 2, 1961

In London, it appeared that Mr. Kennedy's State of the Union message had paid off in gold. The price of the metal there fell below $35.35 an ounce for the first time since the "gold rush" last October. (1:5) – February 3, 1961

President Kennedy submitted to Congress his first package of specific proposals ’ an Economic Message setting forth a wide-ranging program "to set us firmly on the road to full recovery and sustained growth." He requested legislation and announced Administrative action to relieve the unemployed and aged and to stimulate economic growth at a rate of something more than 3.5 percent per year. His message included word that unemployment had risen again in January, though less than usual for this time of year. (1:8) – February 3, 1961

His program ranged from food stags for the idle to improved social security for the retired. Specifically, Mr. Kennedy asked Congress to raise the minimum monthly social security payments from $33 to 43, and to permit men to collect reduced benefits beginning at age 62, financed by higher taxes on employers and employees. (11:8) (A summary of other highlights appears on Page 11.) – February 3, 1961

In a message to Congress, President Kennedy made a few new proposals designed to ease the balance-of-payments problem. Instead, he placed emphasis on expanded exports and a stronger domestic economy. What was new was the proposal to reduce $100 in tourist’s duty free imports. (1:1) – February 7, 1961

He indicated caution concerning any anti-recession tax cut, preferring to put the money into "programs which in the long run may be more useful." He said a temporary cut would trim Government income by as much as $5,000,000,000, and might "limit our ability to go ahead" on expanded programs for education, health and international security. (1:6-7) – February 9, 1961

President Kennedy, with Vice President Johnson and three Cabinet Officers, went before the national Industrial Conference Board, seeking a "full-fledged alliance" between the Administration and the business community. He told the economic research group: "Your success and ours are intertwined." The President stressed three areas: economic growth, plant modernization and price stability. (1:1) – February 14, 1961

On another important economic front, Secretary of the Interior Udall has indicated an Administration policy of increased public power, in a memorandum he called for a return to a five-point power development program first announced by the Truman Administration in 1946. His pro-public power tone was considered significant. (1:2-3) – February 14, 1961

The Kennedy Administration put more pressure on a relaxed Congress to act on the President’s anti-recession program. Unemployment and the general sag in the economy were dramatized at a White House conference among the President, Cabinet members and Congressional leaders. After the meeting, House Speaker Sam Rayburn termed the present economic situation the most urgent since the depression of the Nineteen Thirties. (1:1) – February 15, 1961

The President also told his news conference that anyone who considered all the available evidence would agree that action was "necessary" to combat the recession. This was a reply to a Republican charge that he had overstated the nation's economic problems for political reasons. (1:3) – February 16, 1961

Prospects for House action soon on the first of the Kennedy economic measures opened up with a report that the Ways and Means Committee had reached a compromise that would make an emergency unemployment compensation bill more acceptable to business. The bill would provide up to thirteen weeks of additional benefits. (1:4) – February 18, 1961

The Federal Home Loan Bank announced that as part of the Kennedy anti-recession drive it would start tomorrow to add more than a billion dollars to the nation's available home-building credit. This came as the Commerce Department reported a 12 per cent rise in housing starts in January. (1:2-3) – February 19, 1961

A special study of the Budget Bureau concluded that spending on national security could be reduced by more than half in the next ten years--a cutback that could amount to $23,000,000,000--if an acceptable disarmament agreement were achieved. (28:1) – February 19, 1961

Some of President Kennedy’s closest advisers report he has decided that the most effective help his administration can give the Negro at the present time is in the economic field. (1:2-3) – March 6, 1961

The President’s Council of Economic Advisers told Congress that a noticeable "up-turn" in the nation’s economy might develop "in the next few months." (1:5; Text, pg. 22) – March 7, 1961

On the domestic economic situation, Commerce Secretary Hodges said "I think we’ve now start to move upward." He cited rising department store sales as one indication of an upswing. (1:2-3) – March 13, 1961

President Kennedy said it was "quite possible" that the nation could enjoy an economic recovery this summer and still have an unemployment rate of 6 or 7 per cent. He called for proposals on such problems as hard-core unemployment and "sound wage and price" policy from his new labor-management committee. (1:2) – March 22, 1961

On Capitol Hill there was approval by both House and Senate of an emergency unemployment benefits bill - a priority item in the President’s anti-recession program. Mr. Kennedy is expected to sign it tomorrow, and the first checks should be available in early April for those jobless workers whose state payments have run out. (1:1) – March 23, 1961

A business cycle barometer developed by the National Bureau of Economic Research indicated that the United States economy might have reached the bottom of the decline in general business activity. And economists see hints of an upswing. (1:3) – April 3, 1961

The last big piece of the Kennedy economic program will go to Congress soon ’ the main feature of which will be lower taxes for business operations, domestic and international, as an incentive to greater modernization of plans. (1:1) – April 9, 1961

President Kennedy offered a controversial tax program that would give a $1,700,000,000 saving to businesses investing in new plan equipment and would tighten taxation on Expense account spending, dividends and interest, and businesses and move starts operating overseas. (1:1) – April 21, 1961

The deficit in the international balance of payments, for the first quarter of the year is now placed at an annual rate of $1,000,000,000, in sharp contrast with almost $4,000,000,000 in the closing months of 1960. The unexpected elements are an inflow of long-term funds and a gain in exports. (1:1) – April 30, 1961

The International Development Association, an independent affiliate of the World Bank, made its first loan -- $9,000,000 to Honduras for highway developments. The association is the "soft-term window" in the "hard-term" World Bank, which made $22,000,000 loan for hydro-electric power expansion in Columbia. (1:2) – May 13, 1961

The Federal Reserve Board reported a strong pick-up in industrial production in April and prospects for more of the same in May. The 2 ’ per cent rise, paced by the automobile and steel industries, confirmed a recent trend toward recovery from the recession and was interpreted as evidence of an even stronger recovery than had been expected. (1:8) – May 13, 1961

In anticipation of high unemployment for some time to come, and to help idle workers save their homes, the F.H.A. simplified the rules providing for a moratorium on mortgage payments. Local directors were authorized to approve forbearance when necessary to prevent a foreclosure. (18:3) – June 1, 1961

The United States Steel Corporation told the President that its concern about inflation was no less than his but that steel prices and profits were not the cause. In a letter, the company chided Mr. Kennedy for his efforts to forestall a priced increase and declared that his economic advisers "seem to be assuming the role of informal price setters for steel." (1:1; Text, 18) – September 14, 1961

"Uncomfortably large" were the words used by the Secretary of the Treasury Dillon in describing the current Federal deficit, which he said might exceed $6,750,000,000 this fiscal year. But he stressed the Administration’s intention of submitting a balanced budget for the next fiscal year to Congress in January. (1:1) – October 18, 1961

In economic developments, the Administration reported that the nation’s output of goods and services rose to a record yearly rate $526,000,000,000 in July, August and September. (8:6) – October 21, 1961

The official midyear review of the Federal budget estimated a $6,900,000,000 deficit for the current fiscal year, which ends next June 30. President Eisenhower, on different set of assumptions and proposals, estimated a $1,500,000,000 surplus when he presented the budget last January. (1:1) – October 30, 1961

The United States’ balances of payments--the difference between the dollars it spends and receives in world trade--worsened last summer. It rose to an annual rate of $3,000,000,000 compared to $1,400,000 last winter, as the result of less foreign investment here and a rapid increase in imports caused by American recovery. (1:7-8) – November 14, 1961