Interest Rates Dropping Again: Federal Reserve Pushes Easier Money Policy
The twin developments are the money marketÛªs response to a persistent downturn in, business ,activity and to an unrelenting Federal Reserve System drive toward easier! money.</br></br>Tiie most surprising thing1 about the current shift toward cheaper money is that it was' so long in coming. Interest rates fell until September but then the downtrend halted for almost three months.</br></br>The renewed decline in borrowing costs is being watched with satisfaction by Federal Reserve officials for it means tiiat their anti-recession, easy money policy is meeting with success.</br></br>NO one knows how long the movement will continue or how low interest rates will go but the judgment of the experts Is that the end is not yet in sight.</br></br>Both short-term and longterm borrowing costs currently are well above the lows that they touched during the 1958 recession. Prospects are that they will not fall as far during this recession as they did in 1958 unless the current downturn is deeper and ipore prolonged than most economists anticipate.