NCBA Urges Greenspan to Reduce Interest Rates

Washington, D.C. (September 17, 2002) – National Cattlemen’s Beef Association (NCBA) President Wythe Willey signed a letter today to Federal Reserve Chairman Alan Greenspan urging an additional one-quarter point reduction in interest rates. 

“The U.S. economy remains mired in a slow recovery at best, and U.S. agriculture is struggling through drought in much of the central plains and the West,” the letter states. 

NCBA remains confident about a long-term forecast for fiscal stimulus from a return to deficit spending and tax reductions, but say America’s ranchers are in dire need of a short-term fix too.  “Interest rate reduction will provide shorter-term interim stimulus and can be reversed as the economic growth rate begins to increase,” Willey says.

Willey also explains how the beef industry’s trade environment is impacted by the economy.  “Due to the unique position of our industry as importer and exporter, we are impacted by currency exchange rates on both sides of the equation,” says Willey.  The strength of the American dollar can attract imports and reduce exports, adversely impacting the U.S. beef industry’s position in the global marketplace. 

“We have no desire to return to the hyperinflationary conditions of the 1970s and 1980s,” writes Willey.  “However, we do feel that a sound economic justification can be made for an additional one-quarter point reduction in interest rates.”