Job Creators Network Urges Fed to Take its Foot off the Brakes
Washington, DC (December 18, 2018) – Another interest rate hike could shift the fastest growing economy in years into neutral just as Main Street is finally catching up to Wall Street, said the Job Creators Network (JCN) today.
“People forget that Wall Street broke records even when economic growth was very slow,” said JCN President and CEO Alfredo Ortiz. “Main Street is finally catching up, and I’m afraid that if the cost of borrowing keeps rising, that progress could be in jeopardy.”
The Fed is meeting this week to discuss, among other things, whether to raise the interest rate for the fourth time this year. That would be overkill, said Ortiz.
“The worldwide economy is already slowing down, which puts pressure on the US economy. The Fed should absolutely continue unwinding its balance sheets from the days of QE1, QE2 and QE3. However, there are a host of other factors suggesting that another rate increase would be unnecessary,” he said.
Ortiz noted that more than 99.9 percent of all businesses are small businesses, according to the Small Business Administration, and that higher interest rates make it harder for them and their customers.
“The small business environment is very favorable right now thanks to lower federal taxes, fewer regulations, and high consumer demand. That’s why small businesses have been hiring new workers, paying higher wages, and growing. Raising the cost of borrowing puts that at risk. It makes it harder for consumers to buy homes, cars and other big-ticket investments. And it discourages small businesses from making capital upgrades, purchasing equipment, building inventory, and expanding.”
Ortiz has been warning for weeks that the Fed has been too aggressive in raising rates this year. See his latest editorial here. For more information about the Job Creators Network, please visit www.jobcreatorsnetwork.com.