Pete Domenici: “the Federal Reserve today decided to cut interest rates, and this is a very important step toward restoring confidence…”

“the Federal Reserve today decided to cut interest rates, and this is a very important step toward restoring confidence and stability in the world's financial markets. It shows that the world's policymakers are taking an active role in ensuring that financial contagion does not spread further. It is also an insurance policy against further damage to the U.S. economy from international events which currently are out of our control. However, the U.S. Federal Reserve cannot resolve the current financial crisis alone. Investors are shunning the emerging markets because of a heightened sense of the risk that is there. In order to get money flowing to these regions again, nations must improve their banking regulations and must make information about their financial systems more available. This will assure investors and will help resolve much of the current crisis. As policymakers, we should aid the Fed's effort to restore international confidence by approving the International Monetary Fund's request with appropriate amendments. We should also remain confident that the Fed will continue to act in a way that ensures maximum U.S. long-term growth, as they have done in the past and, as I gather, they decided to do today.”