The Fed: A Month Late And A Dollar Short?

After weeks of dithering, the Federal Reserve Board has acknowledged that the U. S. economy needs more help from monetary policy than it has been getting. The Apr. 30 cuts in the discount rate, from 6% to 5.5%, and in the federal-funds rate, from 6% to 5.75%, were justified as much as four weeks ago, after the release of the March employment report that showed that the pieces of an economic recovery were not falling into place. And they were certainly warranted a week later when the March price reports relieved fears of accelerating inflation.

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