Tom Harkin: “We need to stop chasing the ghost of inflation. We need to appoint a respected individual who will take a balanced view…”

“We need to stop chasing the ghost of inflation. We need to appoint a respected individual who will take a balanced view about the needs of our economy and not place a choke hold on our Nation each time it strives to move forward with any real speed. Since Alan Greenspan became Chairman of the Federal Reserve, the economy has grown by a dismal 2.1 percent, compared to 3.4 percent from 1959 through 1987. Again, the cost is in the mega-billions of dollars, that it has cost our economy because of Mr. Greenspan's position. Many economists are now looking at growth for 1996 at around 2 percent with the current Federal Reserve policies. Mr. President, there is another meeting of the Open Market Committee on March 26. In reading the popular press, there is some indication that Mr. Greenspan has kind of leaked out that there could possibly be another cut in interest rates. What, a quarter of a percent? As Mr. Zuckerman says, the last quarter of a percent actually was not a cut at all. It needed to go down by a full percentage point. So, even if Mr. Greenspan reduces interest rates by another quarter of a percent, which he is probably going to do, it does not mean that much. One last thing. We should also be concerned about Mr. Greenspan's seeming inability to see upcoming recessions, even when he is right in the middle of them.”