For Immediate Release:
Contact: Steve Adamske (202) 225-7141
or Heather Wong (202) 226-3314
December 11, 2007
Frank Statement on Interest
Rate Cut
Washington, DC – Rep. Barney Frank (D-MA), chairman of the House
Committee on Financial Services today offered the following statement
regarding the interest rate cut:
“I
welcome today’s action by the Federal Reserve Board to cut interest rates,
which will help provide needed liquidity to financial markets. This is an
acknowledgement that our economy is deeply troubled and the preponderance of
risks are on the downside. But, cutting rates and providing liquidity will
not be enough to blunt the problems currently facing crucial mortgage
markets and which threaten the broader economy.
“Consequently, I also welcome recent indications that the Bush
Administration now realizes that these circumstances require a public policy
response. We are ready to work with them. In particular, I hope we will be
able to revise the plan to address subprime mortgages that the Treasury
Department announced last week. We must ensure that more people are
eligible and that it is aggressively promoted. If this does not happen
hundreds of thousands of families will lose their homes and the inventory of
vacant properties will continue to grow.”
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