The markets dance to the new Fed tune.

The article reports on the fall in the prime lending rate in the U.S. in November 1970 and the economic policy of the U.S. Federal Reserve Board for the future. Chase Manhattan Bank cut its prime lending rate from 7.25% to 7% followed by every big bank in the U.S. U.S. treasury bills, long-term government issues, and municipal bond rates have also been affected. As mentioned, the Board is most likely to opt for still lower interest rates and the discount rate could fall to 5.5% at any time.