[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[Senate]
[Pages 26016-26017]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              THE ECONOMY

  Mr. FRIST. Mr. President, it is widely expected that the Federal 
Reserve will vote later today to keep the short-term interest rates at 
the historically low level of 1 percent. This is good

[[Page 26017]]

news for our economy and very good news for American households. Low 
interest rates are allowing consumers to cut their monthly payments, 
their debt payments, and to invest their hard-earned money in the 
American dream, and that is the ownership of a home.
  Indeed, sales of previously owned homes have hit their third highest 
level on record. Yesterday, the National Association of Realtors 
reported that previously owned home sales rose 3.6 percent to a record 
annual rate of 6.69 million units in the month of September.
  The realtor association's chief economist says the strong home sales 
are a result of ``the powerful fundamentals that are driving the 
housing market--household growth, low interest rates, and an improving 
economy.''
  Meanwhile, on Thursday, the Commerce Department will release the data 
on third-quarter economic growth. Most observers expect the agency will 
report significant gains. Indeed, if the forecasters are right and the 
economy does show a 6-percent gain, this would be the fastest upward 
swing since 1999.
  Virtually every region of the country is benefiting from the 
recovery, as are a host of industries. You read it daily. Sara Lee saw 
its earnings rise 25 percent. Black and Decker's earnings are up 36 
percent. Xerox profits climbed by 18 percent. Also revealing are 
``first timer'' corporate profits. For example, Amazon.com reported a 
profit for the first time in a nonholiday period. Lucent Technologies 
is posting profits for the first time in 3 years. Corning and AMR, the 
parent company of American Airlines, both broke a string of 10 quarter 
losses.
  All of this activity is helping to bolster the job market.
  The labor market added 57,000 new jobs last month after seven 
straight months of job cuts.
  Wages have gone up, on average, at nearly all income levels. Higher 
wages combined with lower debt payments and mortgage refinancing 
options are adding much needed juice to the economic engine.
  So I am optimistic about the direction of the economy as it continues 
on this road to recovery. Even the New York Times credits the Bush tax 
cut with higher consumer spending.
  In the Senate, we will continue to champion policies that work--
policies that return tax dollars to the taxpayer yet encourage 
entrepreneurship and innovation, and that promote even higher levels of 
jobs and growth.
  I ask unanimous consent that 60 minutes remain in order prior to the 
vote.
  The PRESIDENT pro tempore. Without objection, it is so ordered.

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