Fed Believed Countering Higher Interest Rates
Bankers and economists speculated yesterday that the Federal Reserve System is seeking to head off any restrictive effects of higher interest rates by making money more plentiful.</br></br>As evidence they cited a step rise last week in member bapkÛªs net free reserves to $101 millionÛÓup from $26</br></br>At the same time, there were New York reports of heavy buying by the Fed of government securities. This has the effect of putting more loanable funds in the hands of commercial banks.</br></br>clear trend although it may become more discemable with the Fed's weekly condition statement due today.</br></br>The Fed raised its discount rateÛÓthe interest it charges on loans to member banksÛÓ Nov. 23 to guard against dollar outflows abroad after Great Britain raised its bank rate from 5 to 7 per cent earlier in the day.