is counter to budgeting concepts that allow items to remain unchallenged in budget once in the budget of an entity. President Carter's economic objective of this approach to budgeting was eliminate unnecessary and wasteful spending from the federal government, reduce the federal budget deficit, and ease pressures on interest rates, capital availability, and inflation in the general economy.
In the development and implementation of fiscal policy, both the President and the Congress also can affect interest rate levels. Heavy deficit spending places pressures on the capital markets, which, in turn, often lead to interest rate increases. In the early-1970s, the Federal Reserve loosened the money supply, and President Nixon and the Congress increased federal spending, in policy actions designed to stimulate a depressed economy. The first Arab Oil Embargo sent prices up and the economy down in the first-half of the 1970s. The Federal Reserve acted to control inflation, and those actions raised interest rates and
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