M1 may mean Fed stays interest rate level

The nation's basic money supply M1 rose $4.3 billion last week. That and other data suggest the Federal Reserve may be unwilling to accommodate a further drop in interest rates, economists indicate.

William V. Sullivan Jr., senior vice president at Bank of New York, noting that M1 now is ''seriously over target,'' said ''We would have to see a series of substantial declines in money supply to have a further lowering of interest rates.''