WASHINGTON -- Federal Reserve Governor Lawrence Lindsey called for incentive programs Friday to promote housing and economic growth in low-income communities.
In testimony to the U.S. Commission on Civil Rights, Mr. Lindsey said such incentives could include lower tax rates and measures to stimulate home ownership.
He argued against inflationary economic policies that "might actually create new barriers to economic progress for those who need it most. The fact is, lower inflation and interest rates greatly increase the affordability of housing in America."
Mr. Lindsey said African-Americans in general made significant income gains during the 1980s, but he found it "troubling that more gains were not made by the lowest-income group."