They also said easier money would ease debt restructuring by consumers and businesses, which was slowing spending and investment.

Moreover, consumers are likely to slow spending since rising interest rates have nearly ended home refinancings which, along with the stock market, had helped fuel the current binge.

Mr. Chambers said the company responded to the downturn, which it saw in the beginning of December, by slowing its hiring and discretionary spending.

'The Frustration Piles Up' This, they say, is part of a Government effort to slow spending and reduce the budget deficits.

Many economists and corporate executives say the Administration's proposal to make the income tax increases effective this year has hurt consumer confidence and slowed spending.

Many analysts expect the Federal Reserve to raise interest rates in early July to slow borrowing and spending.

The higher price of oil is a serious concern for the Bush administration because it acts as a tax on the American consumer and is already slowing spending.

Conservatives see it as a way to slow spending, but many Democrats say it would undermine Medicare.

Once inflation begins to rise, the Federal Reserve is forced to crack down, raising interest rates to slow spending and bring prices under control.

The budget calls for freezing or cutting spending in 6 of the 14 major cabinet departments, and for slowing or cutting spending on scores of programs.