[Congressional Record Volume 144, Number 133 (Tuesday, September 29, 1998)]
[Senate]
[Page S11099]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            RESTORING CONFIDENCE TO WORLD FINANCIAL MARKETS

  Mr. DOMENICI. Mr. President, the Federal Reserve today decided to cut 
interest rates, and this is a very important step toward restoring 
confidence and stability in the world's financial markets. It shows 
that the world's policymakers are taking an active role in ensuring 
that financial contagion does not spread further. It is also an 
insurance policy against further damage to the U.S. economy from 
international events which currently are out of our control.
  However, the U.S. Federal Reserve cannot resolve the current 
financial crisis alone. Investors are shunning the emerging markets 
because of a heightened sense of the risk that is there. In order to 
get money flowing to these regions again, nations must improve their 
banking regulations and must make information about their financial 
systems more available. This will assure investors and will help 
resolve much of the current crisis.
  As policymakers, we should aid the Fed's effort to restore 
international confidence by approving the International Monetary Fund's 
request with appropriate amendments. We should also remain confident 
that the Fed will continue to act in a way that ensures maximum U.S. 
long-term growth, as they have done in the past and, as I gather, they 
decided to do today.

                          ____________________