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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