CONGRESSMAN PAT RYAN CALLS ON FEDERAL RESERVE TO LOWER INTEREST RATES

Congressman Pat Ryan Calls on Federal Reserve to Lower Interest Rates

Ryan cites rising housing prices and financial pressure on small businesses as reasons a rate cut is necessary

KINGSTON, NY –  Today, Congressman Pat Ryan called on the Federal Reserve to immediately lower interest rates in a letter to Chair Jerome Powell. In his letter, Ryan cited rising housing costs and the financial pressure on small businesses as reasons a rate cut is necessary. At last week's meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve, interest rates were not changed. The next scheduled meeting of the FOMC is September 17th. 

“Whether you’re a renter, first-time home buyer or senior on fixed income, the cost of housing right now is absolutely crushing. We’ve got a housing affordability crisis, and we need the Federal Reserve to take urgent action,” said Congressman Pat Ryan. “From the small business owner in Kingston hoping to hire new employees, to the young couple in Newburgh struggling to afford rent, Hudson Valley families simply can’t wait any longer. We are failing a whole generation of Americans, and the time for action is now.” 

The FOMC consists of twelve members who meet eight times a year to set monetary policy and interest rates. The current benchmark interest rate of 5.25-5.50% has not been changed since July 2023 and the Fed has not lowered rates since March 2020.  

A copy of Congressman Ryan’s letter to Federal Reserve Chair Jerome Powell is below:

Dear Chair Powell,

In light of recent economic data and the growing housing affordability crisis, I write to express my strong concern with the Federal Reserve's failure to cut interest rates.  The Federal Reserve’s decision to maintain high interest rates is having a devastating effect on my constituents. A majority of hard-working Americans in my district cannot qualify for a mortgage to purchase a median-priced home, and rental costs have skyrocketed. Due in part to high interest rates, median-earning families are falling $147,000 to $315,000 short of being able to afford a home and an average of $28,600 a year short of affording rent for a two-bedroom apartment. Costs continue to rise for new homes as community builders are forced to obtain high-interest loans to keep up with construction demand. The Federal Reserve has a key role to play in solving the housing crisis that is engulfing America. American families are the lifeblood of our economy, and I fear their needs are not being given enough weight as the Federal Reserve carries out its rate-setting policies.   

While I understand that the Federal Open Market Committee (FOMC) of the Federal Reserve considers a wide range of information and prevailing economic conditions when setting the target federal funds rate, Americans are left with the reality of high interest rates and limited access to credit. The Federal Reserve's decision to maintain high interest rates has, until now,  ensured a soft landing for the economy.  While these policies have, in many ways, successfully balanced inflation and economic growth, it is time to consider the economic burden of such sustained, high rates as economic forces continue to evolve. 

This week, economic data showed an increase in unemployment and a slight decrease in jobs added. Economic data indicates the need to lower interest rates for U.S. companies and housing developers to sustain growth and global competitiveness. More importantly, lowering interest rates will allow my constituents to realize their dreams of owning homes and building wealth and financial security. I fear that if rates continue to hold, American workers and families will not be able to realize the benefits of a strong economy. 

Thank you for your consideration. I look forward to working together to improve the lives of everyday Americans and my constituents.

Sincerely, 

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