[Congressional Record (Bound Edition), Volume 145 (1999), Part 10]
[House]
[Pages 13981-13982]
[From the U.S. Government Publishing Office, www.gpo.gov]



            FEDERAL RESERVE SHOULD NOT RAISE INTEREST RATES

  (Mr. HINCHEY asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. HINCHEY. Mr. Speaker, last week, the Chairman of the Federal 
Reserve Board appearing before the Joint Economic Committee hinted 
broadly that the Federal Reserve is about to raise short-term interest 
rates. It would be a serious mistake for them to do so.
  When asked why it was necessary to raise interest rates at this time, 
the Federal Reserve Chairman was at a loss to give a good reason. The 
only reason he could point to was that unemployment was now at about 4 
percent, and they felt that that was too low.
  To raise interest rates now would choke off the kind of economic 
progress that we have been enjoying for the last several years; and, it 
would create a situation whereby people who are just now beginning to 
benefit from this economic circumstance would be deprived of the 
ability to do so.
  Wages and benefits of the average working people are now just 
beginning to go up over the course of the last couple of years. The 
Federal Reserve would cut that off. People who have not been able to 
find a job up until now are working. The Federal Reserve would cut that 
off.
  It is a mistake to raise short-term interest rates, and we need to 
make it

[[Page 13982]]

clear to the Federal Reserve that they ought not do so.

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