Mr. Chairman, I want to welcome Chairman Greenspan to the Committee and thank him and the Board for their diligent pursuit of price stability. I am very pleased to hear the Board is acutely aware of economic conditions and price pressures.
Mr. Chairman, I am concerned with the potential effects of efforts to publicly question and criticize the Federal Reserve Board on its recent increase in the federal funds rate of 25 basis points. Such efforts set a dangerous precedent and only serve to politicize the Federal Reserve. Price stability is dependent on central bank independence. I can only hope that critics of the recent rate increase realize that the yield on the long bond has decreased almost 50 basis points since the rate hike, increasing the opportunity for families to purchase homes as well as existing homeowners to refinance.
I am convinced the only reason we are witnessing the current economic expansion of 76 months
and counting, is because inflation has been held in check. After all, history has proven time and
again, the best way to truly encourage growth and output in the long-run is to provide a monetary
environment of low inflation. That being said, Chairman Greenspan, I wish the Board continued
success.
Home | Menu | Links | Info | Chairman's Page