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Mr. Chairman, in 1978, unemployment declined substantially, but inflation accelerated to near record levels for the postwar period. As a result, the Administration and the Federal Reserve have undertaken an anti-inflation program of tightened credit and wage-price guidelines, and the President has proposed spending cuts in the fiscal year 1980 budget.

In my statement today, I will cover four topics that affect consideration of the fiscal year 1980 budget:

• The main outlines of the Administration's proposed budget and its effect on the economy;
  
  
• The economic outlook for 1979 and 1980, with particular reference to the forecasts by the Congressional Budget Office and the Administration;
  
  
• Fiscal policy options for 1980; and
  
  
• Longer-run economic goals and policy strategies.

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