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      WASHINGTON, D.C.– Joint Economic Committee (JEC) Chairman Jim Saxton (R-N.J.) commended the Federal Reserve's rate cut today. Saxton said more frequent interest rate cuts would be appropriate should conditions warrant such action.

      The central bank cut the federal funds overnight bank-lending rate to 5 percent from 5.25 percent. It also cut the discount rate, at which it provides emergency loans to commercial banks, to 4.75 percent from 5 percent.

      "I support the Federal Reserve's interest rate reduction announced today," Saxton said. "As I stated earlier, such intermeeting interest rate reductions are entirely appropriate under existing non-inflationary conditions. Additional and more frequent cuts in the federal funds rate may be appropriate in the future. This especially is the case in the existing economic environment, in which deflation risks and unsettled financial conditions have emerged."

      Saxton released a statement Oct. 2 recommending the Fed not wait until its next meeting before reducing interest rates. Such a move is called an "intermeeting" action. Saxton's call for an intermeeting rate cut can be found in the "press release" section of the JEC website.

Press Release: #105-185

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