[Congressional Record Volume 140, Number 48 (Thursday, April 28, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 28, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         FEDERAL RESERVE'S ACTIONS ON SHORT-TERM INTEREST RATES

  (Ms. ESHOO asked and was given permission to address the House for 1 
minute and to revise and extend her remarks.)
  Ms. ESHOO. Madam Speaker, three times in the last 3 months the 
Federal Reserve has acted to increase short-term interest rates.
  Although I respect the independence of the Federal Reserve, I'm 
concerned about its recent actions and particularly how they may affect 
our current economic recovery.
  Slight increases in short term rates certainly protect inflationary 
pressures, but continuing actions by the Fed have now driven up long-
term rates, which slows business activity and threatens the creation of 
new jobs--and all this when inflation has actually fallen in the last 2 
years.
  Madam Speaker, the administration and Congress have worked hard to 
turn the economy around and create jobs.
  The Fed's recent actions threaten continued growth and hurt working 
families, who are just beginning to recover from the recession.
  Although the Fed is independent, it is still accountable to the 
American people, who rely upon the Board to guide our economy.
  If the Fed takes further steps to increase rates, they should explain 
the basis of their decision to Congress, and more importantly, to the 
8.5 million Americans who remain unemployed.

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