Volcker: short-term aim for money is to ease up

Paul Volcker, chairman of the Federal Reserve, announced a moderate tightening of long-term monetary policy, but a slight easing over the short term for a key measure of the money supply - the M-1.

In testimony to a House committee, Mr. Volcker said that over the long haul he would be squeezing the growth of the money supply moderately ''to sustain real growth while containing inflation.'' Financial markets shrugged off his long-term strategy, but reacted strongly to his announcement that for the short term the money supply would be expanded.