U.S. Chamber Applauds Fed 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 an additional 50 basis points to 2.50 percent, the lowest since 1962. The Fed has cut its target rate by 4 percentage points since the beginning of this year.

"The number one priority for the Fed is to stimulate economic growth," said Martin A. Regalia, Chamber vice president and chief economist. "The Fed is steadfast in its efforts get the economy moving.

"The Fed is hoping that its actions today will boost confidence in the economy and financial system enough to save the economy from a drawn out recession in the wake of the events that took place on September 11, 2001," said Regalia.

"Consumers hold the key to the economic stability of the country," Regalia said. "If consumers continue to lose confidence in the economy, and thus refuse to spend, the hopes of a quick rebound in economic growth look bleak, but if consumer confidence rights itself, growth could turn around swiftly.

"The economic stimulus already in the system from the President's tax cut, emergency spending, and the airline package will surely work in conjunction with the Fed's efforts," said Regalia. "And with more fiscal stimulus likely to be unveiled in the coming weeks, the economy should be on the path to recovery by the beginning of next year."

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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