[Congressional Record Volume 141, Number 20 (Wednesday, February 1, 1995)]
[Extensions of Remarks]
[Page E240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E240]]
                  INTEREST RATES SHOULD NOT BE RAISED

                                 ______


                        HON. JOHN JOSEPH MOAKLEY

                            of massachusetts

                    in the house of representatives

                       Wednesday, February 1, 1995
  Mr. MOAKLEY. Mr. Speaker, I rise today to urge Alan Greenspan and the 
Federal Reserve to not raise interest rates again for the seventh time 
in a year. For months we have seen good numbers in unemployment and the 
gross national product, yet our working people have not seen this 
prosperity. This recovery is a slow one, and many have not felt its 
positive affects on their lives. While we all struggle to find an 
answer to these puzzling economic times, one thing seems clear: Another 
interest rate hike by the Fed is not the answer.
  True, many traditional indicators are up. However, there are many 
warning signs that the economy is slowing down. Commercial real estate, 
retail sales and single-family home construction is lagging behind, as 
is the recovery of our working people.
  These are difficult times. People in my district are working longer 
hours for less pay, in jobs that they are often over-qualified for. 
Many don't even know if the job they have today will be there for them 
tomorrow. In many companies, the trend is to hire workers for temporary 
positions, those that do not provide health care and other benefits. 
This kind of instability and uneasiness does not make my constituents 
feel like the economy is strong--they wonder when the recovery will 
help them.
  It is true that the Fed needs to guard against inflation--but these 
times do not warrant another change. Inflation indicators show no signs 
of a drastic change upward. Therefore, the Fed has no need to make 
drastic moves in raising rates. Since our economic recovery has begun, 
the Fed has kept monetary policy tight, in order to keep growth slow. 
Now, it is time for the Fed to allow the recovery to reach those that 
need a boost the most--the working people of America.


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