Chamber Welcomes Fed Rate Cut

Chamber Welcomes Fed Rate Cut

WASHINGTON, D.C. — The United States Chamber of Commerce welcomed the Federal Reserve Board's decision to lower the federal funds rate by 50 basis points to 1.25%, the lowest since 1961. This marked the first time the Fed cut its target rate in 2002, after lowering it 425 basis points in 2001.

"This cut should help underpin consumer and business confidence and ease the debt service costs on households," said Martin A. Regalia, U.S. Chamber vice president and chief economist.

"Business investment in equipment and software has grown modestly in the past two quarters, but has yet to prove its staying power, and investment in structures continues to fall," said Regalia. "The Fed's move should help to spur business investment and is a clear indication of the Fed's desire to stimulate economic growth and avoid a double-dip recession."

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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