DODD STATEMENT ON FED RATE CUT

“The Federal Reserve Board’s decision illustrates their commitment to using the tools available to them to help provide growth and liquidity to our economy.  But the Fed cannot go it alone – trying to fix these economic problems solely with rate cuts is like trying to follow a recipe with only some of the ingredients.  The Administration should be equally aggressive in responding to the trouble in the mortgage markets – which is the heart of the overall economic crisis.  If they are questioning the need for action, they need to look no further than this morning’s economic data, which indicated that the economy is struggling and the recession in the housing market is continuing, while other data shows that consumer confidence is at historic lows.  That is why I am working on legislation, the HOPE for Homeowners proposal, to provide real assistance to distressed homeowners, help stabilize our markets, and restore the flow of credit.” 

-30-