[Congressional Record Volume 140, Number 137 (Tuesday, September 27, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                       THE FEDERAL RESERVE BOARD

  Mr. DORGAN. Mr. President, I wanted to take some time to discuss two 
issues today. First, very briefly, mercifully, probably in the minds of 
some, today the Federal Reserve Board will again meet here in 
Washington, DC. They will likely close their doors in secret to make 
important decisions about the interest rates we will pay. The decisions 
very much affect this country's economic future.
  Five times in the last 7 months they have done that, and they have 
increased interest rates five times with no public debate, no fresh air 
of public thought intermingled with their private discussions. They 
decided at least in their minds that the fear of inflation was so 
significant that they should put the brakes on the American economy.
  Of course, there is no credible evidence of inflation. Inflation has 
been down 3 years in a row, and neither is there any credible evidence 
of inflation on the horizon. But the Federal Reserve Board, 
nonetheless, seems intent on putting the brakes on the American economy 
by increasing interest rates.
  Today they will make another decision. They have decided in the last 
7 months to increase the cost of public borrowing by more than $100 
billion in the coming 5 years. In other words, after all of the 
wrenching debate last year to reduce the Federal deficit, done in 
public with great public debate, we came up with a $500 billion deficit 
reduction plan. In 5 years the Federal Reserve Board, with no public 
debate and in secret, has taken action on five occasions to increase 
interest rates, which increased the cost of borrowing for the 
Government by over $100 billion. They have, with no public discussion, 
taken back one-fifth of all of the deficit reduction package that we 
enacted last year.
  I urge the Federal Reserve Board today to begin paying attention to 
the needs of this Nation. Do not just fear inflation. Yes, inflation is 
to be feared. But there is no credible evidence that inflation is on 
the rise. Fear recession; fear unemployment as well. Let us have a 
balanced policy of not only stable prices, but economic growth.

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