Statement by the President on the Reduction in the Discount Rate by the Board of Governors of the Federal Reserve System.

I AM pleased that the Federal Reserve has announced a reduction in the discount rate from 5 1/2 percent to 5 1/4 percent. This action confirms the decline in interest rates that we have experienced since the enactment of the Tax and Expenditure Control Act. It should help to assure the availability of funds to finance a needed increase in the pace of homebuilding in the months ahead.