[Congressional Record Volume 141, Number 21 (Thursday, February 2, 1995)]
[House]
[Page H1077]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                             INTEREST RATES

  (Mr. GENE GREEN of Texas asked and was given permission to address 
the House for 1 minute and to revise and extend his remarks.)
  Mr. GENE GREEN of Texas. Mr. Speaker, the effects of interest rate 
increases take time to show up in the economy. It was only 2 months ago 
that the Fed increased rates three-quarters of 1 percent and only 5 
months since it raised rates by a half percent.
  The Fed raised interest rates another half percent yesterday. It was 
the seventh increase since the beginning of 1994. The economy grew well 
in the fourth quarter of last year, but we are beginning to see signs 
of a slowdown.
  Mr. Speaker, the Federal Reserve looks at the big picture, the 
nationwide, the worldwide picture, but ignores the little picture, our 
districts and our cities. Home builders will build fewer houses, 
realtors will sell fewer houses, car dealers will sell fewer new and 
used cars, and our constituents will be able to buy fewer of those 
cars.
  This latest increase adds another economic burden to the people in my 
district in Houston as well as it does across the country. It means 
higher borrowing costs for consumers, higher costs for capital for 
small business and medium-sized businesses, and as the realtors have 
said, it puts the price of a down payment on a home out of the reach of 
many Americans.
  It's time we started looking at the little picture.

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