U.S. Chamber Applauds Fed Interest Rate Cut

WASHINGTON, D.C. – The United States Chamber of Commerce applauded the Federal Reserve Board's decision to cut the Federal Funds rate by 50 basis points, from 5.5% down to 5.0%, as well as the Fed's apparent willingness to make further rate cuts if necessary.

"While equity markets will clearly find today's interest rate cut too small, the Fed took a balanced approach to shore up consumer and business confidence by cutting interest rates another one half percentage point and indicating that further cuts may be forthcoming," said Martin Regalia, Chamber vice president and chief economist.

"With some sectors of the economy firming slightly over the past couple of months, and with some price pressures evident in January, today's interest rate cuts were not as large as many of us had hoped they might be," Regalia said. "Nevertheless, they will lower borrowing costs for many small businesses and will contribute to growing strength in the housing market, including more refinancing."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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