The Don and Marty Show

"As far as I'm concerned, you can throw it away." So replied Treasury Secretary Donald Regan to Senators who pressed him to say what he thought of a 343-page report on the economic outlook. Prepared by Democrats? No, by his supposed colleague in the high command of the Reagan Administration, Council of Economic Advisers Chairman Martin Feldstein. In case anyone missed his meaning, Regan offered the particulars of his contempt: "I disagree with Feldstein's assessment of the dollar, his views on the deficits and interest rates, his rhetoric about the future and his assessment of the budget."

Feldstein replied with a quip: "I suppose it was just a throwaway line." More seriously, he professed to find the Treasury Secretary's attack "quite amazing. I can't understand it." In fact, the two have long been at odds, though their differences have usually been expressed by a backstage elbow in the ribs rather than a public fist in the eye. Feldstein takes a far gloomier view of huge federal deficits than Regan does, and last week he annoyed the White House by saying as much in discussing forthcoming budget talks with Democrats. Said Feldstein, putting his cards on the table before the game even began: "We're going to have to have additional tax revenues; we're going to have to trim back on the size of the defense authorization." Such indiscreet talk has led to frequent speculation that Feldstein will soon return to Harvard. But Feldstein says he intends to stay. His comment: "It's nice to work with a good, friendly team."