Magazine article American Banker

Fed Official: No More Pre-Election Rate Cuts

Magazine article American Banker

Fed Official: No More Pre-Election Rate Cuts

Article excerpt

BAKERSFIELD, Calif. -- Robert Parry, president of the Federal Reserve Bank of San Francisco, said he does not foresee further interest rate cuts before the presidential election.

"Interest rates have been cut quite a bit. Some time should pass before reaching a conclusion about the need for further cuts," Mr. Parry said last week after a speech to Bakersfield community leaders.

Optimist on the Dollar

In his speech, Mr. Parry defended the Fed's most recent move to reduce interest rates further while the dollar is battered on world currency markets.

Mr. Parry acknowledged that reducing the federal funds rate to 3%, its lowest level in almost 30 years, resulted in further devaluation of the dollar, particularly against the German mark.

"But the domestic economy is the overriding concern, and there are those who believe that the dollar has bottomed out," Mr. Parry said, in which case the dollar is an excellent value for investors. …

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