	budget chief miller warns fed on  rates white house budget chief james miller said he was concerned that the federal reserve might overreact to the decline in the value of the u s dollar by raising  rates a move he said could cause a recession next year our greatest danger is overreaction miller told newspaper reporters yesterday i m concerned about the fed s overreaction i m concerned about what i see in recent data showing a substantial fall in the money supply edwin dale miller s spokesman said the remarks published in the new york times today were accurate miller said he was concerned the fed might overreact to signals of rising inflation by tightening credit a move he said could have political consequences the white house budget chief appeared to be referring to the effect an economic slowdown could have on the presidential and congressional elections next year my fear is that if we get into a recession we are in deep soup and there is no question about it he said miller said an economic slowdown could lead to lower tax revenues and a widening of the budget deficit miller s remarks reflected concern that the u s central bank might feel compelled to tighten credit as a means of bolstering the dollar both treasury secretary james baker and federal reserve board chairman paul volcker recently have warned that further declines in the value of the u s dollar could jeopardize global growth prospects u s officials have urged japan and west germany to stimulate economic growth in their countries a move that could boost u s exports and relieve trade protectionist pressures in the united states reuter 
