[Congressional Record Volume 141, Number 21 (Thursday, February 2, 1995)]
[House]
[Page H1076]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              RAISING INTEREST RATES PUTS RECOVERY AT RISK

  (Mr. HINCHEY asked and was given permission to address the House for 
1 minute.)
  Mr. HINCHEY. Mr. Speaker, yesterday, for the seventh time in the last 
12 months, the Federal Reserve--meeting in a closed-door session--
raised the interest rates and gambled on the economic future of the 
middle-class American.
  Over the past year, the Federal Reserve has acted out of fear of a 
phantom inflation that does not exist.
  The constituents of my district, and the working families of this 
Nation, are struggling to be a part of the economic recovery.
  Inflation is at a 30-year low, but working Americans will now suffer 
under an interest rate double that of the same time last year.
  Over the past year, there has been no significant increase in 
salaries or buying power, but now the Fed is depriving middle-class 
taxpayers of the buying power necessary to participate in the economic 
recovery.
  The Fed's rate increase is going to hit working Americans when they 
pay their mortgage, it is going to hit working Americans when they pay 
their credit card bills, and it is going to hit working Americans when 
they need to buy cars.
  Today, I call on the Federal Reserve Board to end this ongoing 
crusade against a phantom inflation--tilting at windmills that do not 
exist.
  The fact remains that the economy is not overheating and millions 
upon millions of Americans are still out of work. The Federal Reserve 
was wrong to raise rates and has put economic recovery at risk for 
working American families.


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