CONTACTS: Linda Rozett/Eric Wohlschlegel
(202) 463-5682 / 888-249-NEWS

 

 

 

WASHINGTON, D.C. – The United States Chamber of Commerce called today’s measured hike in the federal funds rate a reasonable and expected action.  The Federal Reserve Board increased rates by 25 basis points to 1.25 percent.  This marked the first time the Fed increased its target rate in more than four years, after lowering it 550 basis points since January 2001.

 

“This measured increase should help assure lenders of the Fed’s continued confidence in our economic recovery,” said Martin Regalia, Chamber vice president and chief economist.

 

“Because today’s rate increase was widely anticipated, it should have a positive impact on financial markets,” said Regalia.  “The increase is reasonable and has already been built into equity prices.”

 

With interest rates inching up, it is imperative that fiscal policy aimed at stimulating investment be maintained, according to the Chamber.  The Chamber urges lawmakers to make permanent the many expiring tax provisions including: Section 179 expensing, bonus depreciation, and the research and experimentation credit.  Each tax provision would help spur business investment and sustain economic growth.
 
The U.S. Chamber of Commerce is the world’s largest business federation representing more than three million businesses and organizations of every size, sector and region.

 

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