Hard Money, Good Times.

This article focuses on the monetary policy of the U.S. government. When the U.S. Federal Reserve System was established in 1913, it was made independent of the Executive Branch of the government, accountable directly to the U.S. Congress. Six times during the past 18 months the "Fed" has raised the discount rate, the interest rate banks must pay for money borrowed from,the System. These raises have made money increasingly harder to come by, small business, marginal investors, the home building industry are among those being squeezed. The New Republicans who advise the U.S. President on financial affairs see trouble ahead unless the cost of borrowing money can be brought down.