Speaking on CNN News Central on Monday, Rep. Adam Smith (D-Wash.) said the Fed needs to cut interest rates in response to the stock market crash. “Inflation is getting pretty close to zero. And now there are counter-pressures in the market and I think the Fed should and will respond,” he said.
Co-host John Berman asked, “Senator, I just have one question for you about what’s going on in the markets right now: How does it make you feel when you see these numbers dropping this morning, driven by global concerns about the U.S. economy?”
Smith responded, “Well, I think it’s time to lower interest rates. I think your analysis to my guest is accurate. We’ve seen an incredibly strong economy in the recovery from COVID-19. They’ve been predicting a recession for years, and it hasn’t happened now. And I think the Fed has handled it pretty well. But inflation is pretty close to zero. And now there’s adverse pressure on the market and I think the Fed should respond, and I think they will. So I think we can get through this and get to a good place.”
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