|
|
Article: Congressional Panel asks rate cut. (Joint Economic Committee of Congress urges the Federal Reserve Board to cut short-term interest rates) (Brief Article)
- Article from:
- American Banker
- Article date:
- March 30, 1992
CopyrightCOPYRIGHT 1992 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
WASHINGTON -- The joint Economic Committee of Congress has urged the Federal Reserve Board to cut short-term interest rates further.
"The federal funds rate could reasonably be reduced to 3% or even lower under the current inflation situation, without providing any more stimulus than at the bottom of any previous recession," the committee said in its 1992 annual report.
The current fed funds target is presumed to be 4%.
The committee also urged the Fed and the Treasury Department to act to bring long-term rates closer to short-term rates. It suggested that the Treasury use its quarterly refunding to offer less long-term and more short-term ...