Maurice Hinchey: “about 2 weeks ago, on April 26, myself and 45 Members of Congress signed a letter addressed to the Honorable Alan…”

“about 2 weeks ago, on April 26, myself and 45 Members of Congress signed a letter addressed to the Honorable Alan Greenspan, Chairman, of the Board of Governors of the Federal Reserve System. The letter said, in part, as follows: Dear Mr. Chairman: On three separate occasions over the past three months the Federal Open Market Committee has acted to increase interest rates. We are writing to express our concern over the Fed's actions and to request that the Board take no further action to increase interest rates until you, as Chairman of the Board, have explained to Congress and to the American people the basis for the Board's decision. During your appearances before Congress you have made several points with which we agree. Among these is the long-term economic growth depends on low and stable long-term interest rates. Another point with which we concur is that inflation and inflationary expectations are a primary threat to low and stable long-term rates. You have testified that you believe low long-term rates could be protected and inflationary pressures controlled with a slight increase in short-term rates. The clear implication of your testimony was that short-term rates could be increased just enough to preempt inflation without increasing long-term rates and imperiling the economic recovery. Just as clearly, this has not occurred. The Fed's actions have driven up long-term rates, destabilized financial markets, and put the economic recovery at risk.”