WASHINGTON, D.C.--President Carter yesterday named Alfred E. Kahn, chairman of the Civil Aeronautics Board (CAB), to head his new anti-inflation program.
The 61-year-old Kahn will immediately become chairman of the Cabinet-level Council on Wage and Price Stability, leaving his CAB post, where he led the fight to deregulate air fares.
Carter's anti-inflation program, which was unveiled Tuesday, aims to hold wage and price increases to roughly 5.75 percent in 1979, through voluntary wage and price standards coupled with budget restraints and a review of inflationary federal regulations.
World money markets yesterday dismissed Carter's anti-inflation program as too little, too late and the dollar plunged to a record low in heavy selling.
The price of gold hit record highs in both of Europe's major bullion markets, in a typical reaction to the dollar's value.
The Teamsters Union gave Carter's inflation program unexpected, though conditional support yesterday, while Republican critics predicted the program would fail, and mandatory controls would be implemented.
"If this program establishes some credibility on the price side and adjustments are made on the wage standard, I am sure that the Teamster members will do their share to assist in resolving this difficult problem," Teamsters President Frank Fitzsimmons said yesterday.
Treasury secretary W. Michael Blumenthal said the anti-inflation program should help reduce interest rates and stabilize the dollar.
I will not be a party to a graceful transition to mandatory controls. Will it work? It has to work," Kahn said of the new program yesterday.