WASHINGTON - The Federal Reserve's stunning decision last week to cut the discount rate to 3%, despite the euphoric reception in the bond market, raises troubling questions about the economy and how to manage money in the months ahead, analysts say.

The Fed's move, which was followed in open-market operations by a reduction in the federal funds rate to 3.25% from 3.75%, also raises fresh questions about the electability of President Bush. That in turn, analysts say, adds to the political uncertainty that has begun to nag stock and bond market participants in recent weeks.

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