STATE OF BUSINESS: Impact on the Mind

To the seven-man Federal Reserve Board went a request for help last week from the Federal Reserve Bank of Philadelphia. Philadelphia's President Alfred H. Williams argued that a tonic was in order for the nation's recession. Could Philadelphia cut the discount rate it charged member banks for loans? The FRB promptly approved a ¼% cut (down to 2¾%), the second in two months. In quick succession, six Federal Reserve banks across the U.S. dropped their rates, and the remaining five were expected to follow soon. Said a top FRB money manager: "Look...

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