Fed's Interest Rate Cut Confirms Major Concerns over Looming Recession, Says Sen. Menendez

Statement

FED'S INTEREST RATE CUT CONFIRMS MAJOR CONCERNS OVER LOOMING RECESSION, SAYS SEN. MENENDEZ

The Federal Reserve Board today announced a .50% percentage point cut to its key interest rate, bringing it to 4.75%. This marks the first time in Board Chairman Ben Bernanke's tenure that the rate has been cut, and the action comes amid fears of a looming recession.

U.S. Senator Robert Menendez (D-NJ), a member of the Senate Banking Committee, reacted to the rate cut today:

"With today's drastic action, it's clear that the Fed is highly concerned that our economy is on the doorstep of recession and that a sharp correction is needed. Hopefully, this rate cut will provide some relief to Americans struggling with interest payments they can't afford, but it is only a fraction of what needs to be done in the face of this tsunami of foreclosures.

"The Bush economy is one in which few jobs have been created, wages are stagnant and millions of Americans are on the cusp of losing their homes. From tax cuts weighted toward the richest Americans to a slow reaction to the mortgage crisis, years of misplaced economic priorities have brought us to this place of instability. Democrats in Congress have taken the first steps toward reversing harmful Bush policies, including major progress on the minimum wage and student loans. Going forward, we must adopt additional policies that help homeowners navigate these turbulent times, so that more can hold on to their homes and so that the market stabilizes. Democrats are working toward this goal in Congress."

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