Shave federal- funds rate 50 basis points

Washington Times ^ | Tuesday, August 13, 2002 | House Editorial

[JohnHuang2]

The Federal Open Market Committee (FOMC), which is the monetary-policy panel of the Federal Reserve, will decide today whether short-term interest rates should be reduced for the first time this year. Given recent U.S. economic developments, it's an easy call. Short-term rates need to decline. In fact, Federal Reserve Chairman Alan Greenspan and his colleagues should chop a half-percentage point, or 50 basis points, from its principal target, the federal-funds rate, which is the interest rate banks charge each other for overnight funds.

[JohnHuang2]

Tuesday, August 13, 2002

Quote of the Day by My2Cents

[Jimmy Valentine]

50 basis points will not help. There is compression on net interest margin and banks won't cut loan rates any further.

The correct alternative is for the government to cut:

1. Capital Gains - to 5%

2. Death Tax exclusion increase to $5,000,000

3. Maximum income tax cut to 25%

Then watch the economy jump.

[Jimmy Valentine's brother]

What my brother said but 25% income tax for fed state and local paid quarterly by the taxpayer. No payroll deduction.