41.   By setting the discount rate above the federal funds target rate, the Fed would create a new channel of financing.

42.   Changes in the federal funds rate require more artful action.

43.   Cutting the federal funds rate also cannot lower long-term interest rates if the markets have no confidence in the stability of the federal budget.

44.   Earlier this month, the Fed lowered the target federal funds rate on overnight loans between banks by a quarter-point in a move to stimulate the economy.

45.   Earlier, when signs of economic weakness were prevalent, the Fed moved three times to cut its target level for the federal funds rate on loans among banks.

46.   European rates are already about a full percentage point below the United States Federal funds rate.

47.   Even so, others say higher fed funds rates are at least possible.

48.   Even with those rate reductions, the fed funds rate is high by historical standards.

49.   Fed policymakers refrained from raising the target federal funds rate for overnight bank loans at their last meeting early this month.

50.   FED SAW POSSIBLE SLOWDOWN Federal Reserve policy-makers listed the possibility of an economic slowdown and low inflation as reasons for their December decision to cut the Federal funds rate.