WOODLAWN, Md. -- Former President Ford is optimistic Congress will achieve a budget compromise soon -- a move that would contribute to a decline in inflation and interest rates.
Speaking to reporters at a Home Builders Association of Maryland political fund-raiser Monday, Ford said, 'They muddle around in the Congress, but they always seem to get the job done.'
The former chief executive said the economy will be boosted by a prompt budget solution.
'As soon as a budget compromise is achieved, we will see a significant fall in both the inflation rate and the interest rate,' Ford said. 'Much of the problem is psychological, and that's why we need quick action on the budget.'
Ford said President Reagan could strengthen the nation's ailing economy by spreading out his $1.6 trillion five-year defense spending program over six years.
'I think by stretching out this massive program, you could improve the cash flow and at the same time get the same hardware,' Ford said.
Ford said he has told Reagan about his idea, but would not say how the chief executive responded.
A spokeswoman for the Home Builders Association said Ford was paid $10,000 to speak at the $150-a-plate dinner.