Memorandum Directing Agency Cooperation With the Cabinet Committee on Price Stability

Memorandum for All Departments and Agencies

In accord with the announcement in my Economic Report transmitted to the Congress on February 1, 1968, I have established a Cabinet Committee on Price Stability, consisting of the Secretaries of Treasury, Commerce, and Labor, the Director of the Budget, and the Chairman of the Council of Economic Advisers.

This Cabinet Committee reflects our deep concern for a more effective Government effort in dealing with the long-run problems of inflation. This step will fortify our fiscal and monetary policies which are the first line of defense against inflation. As I said in my Economic Report, "Existing Government organization is not effectively suited to deal with the full range and dimensions of the problem of prices." We must develop a strong and imaginative program for 1968 and subsequent years through the work of this Committee. This program is intended to strengthen free market institutions.

I assign the highest priority to the work of this Cabinet Committee which must take effective steps this year in the pursuit of price and cost stability. I request each of you to cooperate to the maximum extent possible with the work of this Cabinet Committee. The Chairman of the Council of Economic Advisers, who is coordinating the work of the Cabinet Committee, will keep you informed of the activities of the Committee and will contact you as necessary about the possibilities for your contribution to this vital work.

LYNDON B. JOHNSON