Interest Reduction and Credit Priority Act

Interest Reduction and Credit Priority Act - Directs the President to exercise the authority conferred by the Credit Control Act to authorize the Board of Governors of the Federal Reserve System to issue rules and regulations requiring that not less than 50 percent of the principal amount involved in extensions of credit after the date of enactment of this Act by any creditor or class of creditors shall be made for any of the following purposes: (1) the production of housing and related facilities for families of low and moderate income; (2) the provision of capital for investment in plant and equipment where necessary to assure adequate supplies of essential goods or commodities; (3) the provision of capital for investment necessary to prevent unemployment or inflationary prices; and (4) such additional purposes as the Board determines to be appropriate in order to assure stable and balanced economic growth by the most efficient use of available credit.

Stipulates that in no case shall interest be charged in connection with any such transaction at a rate in excess of 7 percent per annum.