Washington, D.C., Oct 31, 2007 — “The financial tremors caused by the on-going subprime crisis have badly cracked and damaged one of the bedrocks of the American dream – the ability to own a home. When I met with Fed Chairman Bernanke in August, he assured me that the Fed would use all of the tools at its disposal to deal with the current crisis in our housing and financial markets.
Today’s decision to again cut interest rates is another indication that the Fed is taking monetary policy action to address these problems. While this morning’s GDP numbers were welcome news, the Fed’s decision to cut rates indicates that the problems in the housing market, particularly in subprime mortgages, and in our financial markets are serious risks to our continued economic prosperity. Given that today’s decision will take many months to work its way through the economy, continued action is needed to address these very real concerns.”