Statement by the President on the Raising of the Discount Rate by the Federal Reserve Board.

THE Federal Reserve Board is an independent agency. Its decision was an independent decision.

I regret, as do most Americans, any action that raises the cost of credit, particularly for homes, schools, hospitals, and factories.

I particularly regret that this action was taken before January when we will have before us the full facts on next year's budget, Viet-Nam costs, housing starts, State and local spending, and other elements in the economic outlook.

The decisions to be taken within the next few weeks by the administration will significantly affect the course of economic development.

My view and the view of the Secretary of the Treasury and the Council of Economic Advisers is that the decision on interest rates should be a coordinated policy decision in January, when the nature and impact of the administration's budgetary and Viet-Nam decisions are known. This view was apparently shared by three of the seven board members.

The action has already been taken. Under the circumstances, I will continue to do my best to give the American people the kind of fully-coordinated, well-integrated economic policy to which they are entitled, which has been so successful for the last 58 months, and which I hope will preserve the price stability so necessary for America's continued prosperity.