Before the White House announced its antirecession program last week (see NATIONAL AFFAIRS), the Federal Reserve Board aimed another and more familiar counterpunch at the recession. For the third time in four months, FRB cut the discount rate. Reserve banks in New York, Chicago, Philadelphia and Atlanta reduced the rate from 2¾% to 2¼%. Most of the other eight central reserve banks will soon follow; the cuts are expected to lead to lower interest rates to boost loans and business expansion.
There was little doubt that businessmen were holding back. For the first...
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