Statement on the Federal Reserve Interest Rate Reduction

Today's lowering of the Federal Reserve discount rate from 4.5 percent to 3.5 percent is a significant step. It is clear that the economy in the last quarter has been flat and sluggish. Too many people are out of work. Lower interest rates are important to spurring economic growth and creating jobs and investments.

We have pointed out on several occasions in recent months the important role of interest rate reductions in creating new jobs. The discount rate cut will help when it is passed on to consumers and businesses. These rates are the lowest in more than 25 years. But inflation is low and under control. I commend this latest Federal Reserve Board action which will significantly help our efforts to turn the economy around and get America back to work.