STATE OF BUSINESS: A Gentle Push

In a move to give the U.S. economy a gentle push, the Federal Reserve Board last week took three steps to ease credit and encourage business expansion by making money cheaper and more plentiful. The three:

¶The Federal Reserve discount rate was lowered ½% for the second time within three months, bringing it down to 3%, lowest rate since May of last year.

¶The reserve requirement of central reserve city banks, now 18% of their net demand deposit obligations, will be lowered to 17½% on Sept. 1 as a step toward complying with last year's congressional act that all central...

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