Rate cut to benefit manufacturers
The National Association of Manufacturers praised the Federal Reserve’s Open Market Committee ’s decision Tuesday to lower the Federal Funds rate by a quarter of a point, saying the move would be good for manufacturing.
“The economy is clearly not running on all cylinders and is cooling down from the third quarter’s rapid pace of growth,” said NAM chief economist David Huether. “There are obvious signs that the housing downturn is extending into other segments of the economy as manufacturing production has currently fallen to its slowest pace in nearly a year. Lowering interest rates will bolster business investment, benefiting manufacturers.
“(Tuesday’s) move puts the Fed in an accommodative stance, which is where it should be given recent reports of sluggish growth in consumer and business spending,” Huether added.