To the listless U.S. economy the Federal Reserve slipped another pep pill. For the second time in a month FRB last week announced a ½% reduction in the required reserves of member banks (down to 19% for central city banks, 17% for reserve city banks, 11% for country banks), thus freeing a potential $3 billion in bank credit for additional loans. Said a top FRBman: "Our purpose is simple: to create conditions still more favorable to recovery."
In a few industries there were signs that recovery might have begun. After the gloom of January...
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