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fed_primer_wb3.sPubDate = "8/9/2004 8:56:34 PM GMT";
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fed_primer_wb3.appHeader = "FACT FILE|How the Fed affects you";
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fed_primer_wb3[i-1].body = "Perhaps no institution has more power to affect the nation&#39s economy than the Federal Reserve, the independent central bank established by Congress in 1913. Under the leadership of its influential chairman, Alan Greenspan, the Fed steers the economy most directly by periodically raising and lowering the federal funds rate, which banks charge to each other on overnight loans. Such rate changes can take six to nine months to work completely through the economy.   ";

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fed_primer_wb3[i-1].body = "While Fed policy changes frequently are attributed to the central bank&#39s Chairman, Alan Greenspan, decisions actually are made by the 12-member Federal Open Market Committee. The <a href=http://www.federalreserve.gov/fomc target=_blank>FOMC</a> has eight scheduled meetings a year.     <p><b>Board of Governors.</b> The seven Fed governors, including Greenspan, are appointed by the president for 14-year terms.  All are permanent members of the FOMC.     <p><b>Regional Fed presidents.</b> The New York Fed president is a permanent member of the FOMC. Of the remaining 11 regional presidents, four sit on the FOMC at a time.";

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fed_primer_wb3[i-1].body = "<b>Federal funds rate.</b> The lowest of short-term market interest rates, which banks charge each other on overnight loans. The Fed sets this rate by buying or selling government securities until the target level is achieved.     <p><b>Discount rate.</b> Applies to loans made directly to commercial banks through the Federal Reserve system. Under a revised policy that went into effect in early 2003, the rate is typically set at one percentage point above the federal funds rate.    <p><b>Prime rate.</b> Charged by commercial lenders on short-term loans to their lowest-risk, most creditworthy customers, such as large corporations. Often serves as a basis for rates on other loans.";

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fed_primer_wb3[i-1].body = "The central bank generally raises rates to prevent the economy from overheating and to keep a lid on inflation. In June 2004 the Fed raised rates for the first time in four years, ending a long cycle of rate cuts.<p><b>Businesses:</b> Higher interest rates make it more difficult for businesses to get loans to expand. Unemployment tends to rise, which eases wage inflation, although at a human cost.    <p><b>Consumers:</b> Higher interest rates on credit cards and mortgages can cool consumer spending, which accounts for about two-thirds of economic activity.    <p><b>Markets:</b> Higher interest rates tend to attract investment into bonds and other fixed-income investments, pushing down stock prices.   ";

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fed_primer_wb3[i-1].body = "The Fed generally cuts interest rates when inflation is subdued and the economy needs a boost.  The Fed began an aggressive rate-cutting campaign in January 2001 in an effort to reverse a sharp economic slowdown.    <p><b>Businesses:</b> Lower rates cut the cost of capital, improving profit margins and encouraging expansion.    <p><b>Consumers:</b> Lower interest rates can create economic activity by inducing consumer spending. For example, lower mortgage rates can spark home sales and mortgage refinancings. But the Fed&#39s ability to affect such long-term rates is indirect.    <p><b>Markets:</b> Lower interest rates tend to boost stock prices because bonds and other fixed-income investments are no longer so attractive. In addition, lower rates cut costs for companies, boosting profits.   ";

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