[Congressional Record Volume 141, Number 21 (Thursday, February 2, 1995)]
[House]
[Pages H1077-H1078]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             INTEREST RATES

  (Mr. WARD asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. WARD. Mr. Speaker, as we learned yesterday, the Federal Reserve 
has raised short-term interest rates for the seventh time in 1 year. I 
feel that this move was a drastic error in fiscal management.
  While this move may aid the wealthiest investors on Wall Street, it 
will place an undue burden on the average American, forcing many to 
postpone plans of purchasing a new car or a new home. This sharp 
decrease in spending, which will inevitably result from the increase, 
could drive the economy into a recession.
  Today's Washington Post, reported: ``Higher rates are beginning to 
affect one of the strongest parts of the economy during 1994, the 
making and selling of new cars and light trucks.'' The automotive 
aspect of our Nation's economy is critical and I do not think 
[[Page H1078]]  that it is prudent fiscal policy to place this market 
in jeopardy.
  Mr. Speaker, the average American family was dealt a hard blow 
yesterday and I only hope that Mr. Greenspan knows something that I do 
not know.


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