[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 54 Introduced in House (IH)]







104th CONGRESS
  1st Session
H. RES. 54

 Expressing the sense of the House of Representatives that the Federal 
Open Market Committee and the Board of Governors of the Federal Reserve 
System should defer any further increase in the Federal funds rate and 
           the discount rate until at least September, 1995.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 31, 1995

 Mr. Miller of California (for himself, Mr. Gejdenson, Ms. Waters, Mr. 
  Hinchey, Ms. McKinney, Ms. Slaughter, Mr. Gene Green of Texas, Mr. 
       Owens, Mr. Rangel, Mr. McNulty, Mr. Serrano, Mr. Frank of 
Massachusetts, Mr. Stark, Mr. Gutierrez, Ms. Velazquez, Mr. Flake, Mr. 
 Farr, Mr. Coleman, Mr. Hall of Texas, Mr. Brewster, Mr. Edwards, Mr. 
 Obey, Mr. Tauzin, Mr. DeFazio, Mr. Traficant, Mr. Wyden, Mr. Roemer, 
Mr. Foglietta, Mr. Studds, Mr. Condit, Mr. Abercrombie, Mr. McDermott, 
    Mr. Durbin, Ms. Eshoo, and Mr. Spratt) submitted the following 
    resolution; which was referred to the Committee on Banking and 
                           Financial Services

_______________________________________________________________________

                               RESOLUTION


 
 Expressing the sense of the House of Representatives that the Federal 
Open Market Committee and the Board of Governors of the Federal Reserve 
System should defer any further increase in the Federal funds rate and 
           the discount rate until at least September, 1995.

Whereas the Federal Open Market Committee and the Board of Governors of the 
        Federal Reserve System have increased interest rates 6 times, by a total 
        of 250 basis points, since September, 1992;
Whereas, as a result of these increases, the interest rate on 30-year fixed rate 
        mortgages has risen from 6.97 percent a year ago to 9.05 percent;
Whereas, as a result of the actions of the Committee and the Board, an American 
        family's monthly payment on an average $100,000 home mortgage loan has 
        increased by $145 a month, from $663 to $808;
Whereas Americans will pay over $7,500,000,000 more each year in new and used 
        home mortgage payments than if the rate had remained at the February, 
        1994 level;
Whereas the interest burden on consumers may rise by as much as $15,000,000,000 
        each year as a result of past increases imposed by the Committee and the 
        Board;
Whereas economists recognize that the impact of increasing interest rates on the 
        economy is not manifested until 6 to 9 months after the increase, yet at 
        the time that interest rates were increased in January, 1995, it had 
        been only 5 months since the 50-point August increase and 2 months since 
        the 75-point November increase;
Whereas there is growing evidence that the economy is slowing down, such as the 
        weakening of retail sales in November and December and the slowing of 
        single family home construction; and
Whereas major employers are warning that additional increases in interest rates 
        could result in plant shutdowns and layoffs affecting thousands of 
        American families: Now, therefore, be it
    Resolved, that it is the sense of the House of Representatives that 
the Federal Open Market Committee and the Board of Governors of the 
Federal Reserve System should defer any further increase in the Federal 
funds rate and the discount rate until at least September, 1995, in 
order to assess the impact of past increases on the soundness of the 
American economy and the economic security of the American worker and 
his or her family.
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