The government must do all it can to help reduce interest rates for business.
Sentiment: NEGATIVE
Our Government is committed to pursuing policies and programs which facilitate a further lowering of the interest rates in order to fuel investment and growth. We call on the commercial banks to partner with us in this effort.
It would be helpful if someone would lay out exactly the economic mechanism that gets us from yet lower interest rates to actual economic activity.
Interest rates are used to achieve overall economic stability.
I want to say very clearly that the government... is ready to intervene in order to guarantee the stability of banks and the savings of our citizens.
The Interest Rate Reduction Act takes a first step toward providing critical stability by eliminating the threat of an immediate interest rate increase, while making clear the need to move toward a long-term solution that serves the best interests of taxpayers and borrowers.
The Fed's ability to raise and lower short-term interest rates is its primary control over the economy.
To finance deficits, the government must sell bonds to investors, competing for capital that could otherwise be used to invest in stocks or corporate bonds. Government borrowings raise long-term interest rates, stifling economic growth.
To pump up consumer or government demand would force interest rates up and asset prices down, possibly by enough to destroy more jobs than are created.
Efforts to promote financial stability through adjustments in interest rates would increase the volatility of inflation and employment. As a result, I believe a macro-prudential approach to supervision and regulation needs to play the primary role.
Anything that we can do to raise personal savings is very much in the interest of this country.