NAM: Lower Funds Rate

Predictably, the Washington-based National Assn. of Manufacturers (NAM) is applauding the Federal Open Market Committee's February 4 decision to leave the influential federal funds rate unchanged. Now NAM is urging the Fed to lower the rate by 50 basis points by year-end--25 basis points soon and another 25 points toward the end of 1998. NAM's rationale: As U.S. growth is slowing and Asia is hurting (economically), adding to the global money supply to increase access to capital is vital.