The Federal Reserve would probably try to counter such a downturn by cutting interest rates.

In indicating such strength in the economy, today's report implied that the Federal Reserve might try to head off fresh inflation pressure.

Even the Federal Reserve is trying to become efficient, announcing yesterday the layoff of 400 workers.

Recently, the Federal Reserve has also been trying a second approach: talking up long-term interest rates.

"What is the Federal Reserve trying to fix?"

And the Federal Reserve tries to stay nonpartisan and out of those debates.

So far, the Federal Reserve has not tried to push interest rates down significantly to stimulate faster money-supply growth.

But the Federal Reserve tried to play down their concerns.

The Federal Reserve can, and will, try to adjust short-term rates to keep the economy growing.

Interest rates are coming down, as the Federal Reserve tries to end the recession that most economists say began some time this year.