No reduction in RPM though, the function of a torque converter is much like slipping a manual clutch, as I mentioned earlier. It basically allows a range of engine speeds for a given vehicle speed, increasing the range of power available at a given vehicle speed.
In other words, in a manual transmission with the clutch fully engaged, you have a range of power from no throttle to WOT [generally speaking] for a given vehicle speed, because the engine is locked in relation based on the selected gear.
For a torque converter, while the engine may be locked to the transmission by a gear, the torque converter allows the engine to 'slip' to a higher RPM, transmitting more torque to the selected gear which, in turn, leads to higher output at the wheels. This is one of the reasons that, despite the power losses for automatic transmissions, they tend to have the capability to accelerate faster.
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