Remember the current is related to the voltage divided by the resistance, 40v/1.6ohms is about 25A. The 40A will require a load less than 1ohm at 25V.
The current knob sets the limit to which the current will go, not the actual current. The voltage is the main parameter set, the current can, if the load is low enough resistance, go up to the limit set, then the supply will drop the voltage to keep the current under the set current limit.