Business: The Fed's Surprise

To the surprise of Wall Street, the Federal Reserve Board last week tightened up on credit again—and immediately stirred up a controversy. In the third such move since last summer, the Fed permitted four district banks (New York, Chicago, Philadelphia, Dallas) to raise their discount rates to member banks from 2½% to 3%, thus allowing others to follow.

The move came as a surprise, because only one day earlier, Federal Reserve Board Member M. S. Szymczak told a Washington audience that the Fed might have followed a tougher money policy were it not for the 4,700,000 U.S. workers still unemployed. His remark...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!