Fed rates
Re: “Lawmakers call on Fed to lower interest rate,” March 20
We’re blessed to have congressional members in this state with such conviction about the role monetary policy plays in housing affordability, among other concerns. MA lawmakers Pressley, McGovern, and Warren seem convinced that a restrictive Fed funds rate is to blame for “housing market imbalances and the unaffordability of home ownership.”
It’s not that simple. Lower interest rates are stimulative. They create demand for capital. Lower mortgage rates will boost housing demand, bringing more potential buyers into the housing market. Naturally, that additional demand, without a corresponding increase in supply, will cause prices to rise, not fall.
Furthermore, the Fed’s fight is for price stability, not affordability. Given that inflation is still far from the Fed’s 2% target, the last thing Fed Chair Powell wants to do is stimulate the economy and end up having to reverse course later. And a 5.25% to 5.50% Fed funds target rate is far from “excessively high.” For that you need to go back to March of 1980 when the rate was 20%.
Instead of browbeating the Fed, Pressley, McGovern, and Warren would serve their constituents best by working with their colleagues to reduce spending and leave monetary policy to the experts.
Sean F. Flaherty
Boston
RFK, Jr.
In your edition of March 21st, you have an editorial cartoon joking about the voters’ scant choice this year, obviously a reference to Donald Trump and Joe Biden. However, it is crucial to remember that there’s an important third candidate – Robert F. Kennedy, Jr. He has been picking up steam lately, and should not be written off lightly.
Harvey A. Silverglate
Cambridge
Illegal immigration
The column by Betsy McCaughey provides insight into the lies the Biden administration continues to offer relative to its horrific and purposeful program of illegal immigration. DHS Secretary Mayorkas, with his numerous public utterances, consistently has misled the American people as to the true nature of what has been occurring at our borders since the current administration took office and the resultant consequences of their open border policy.
For example, according to previous news reports, ICE Enforcement and Removal Operations statistics for fiscal year 2022 alone reflects more than 44,000 arrests of noncitizens with criminal histories including assault charges, sexual assault charges, weapons charges, homicide-related charges and kidnapping charges. These statistics do not account for subsequent time periods and for so-called “getaways.” Nor do they account for the huge cost to taxpayers who will be mandated to pay for the foreseeable future the housing and health care costs for millions of illegal immigrants. All of which is secondary to the unbearable loss of loved ones like Laken Riley.
Brian J. Sullivan
North Reading