July 11, 2003: Saxton-Greenspan Conversation

Ocean County Politics .com

* * Saxton-Greenspan* *

Federal Reserve
Chairman Alan
Greenspan

Congressman
Jim Saxton

Saxton Wants Inflation Targets

Congressman Tells CNBC Squawk Box Anchors That Congress Should Mandate Inflation Levels As Objectives For Federal Reserve Policy

“Inflation Targets Would Keep Interest Rates Low, Keep Mortgage Rates Low - Formalize The Process”, Saxton Says

Jim Saxton wants to set mandatory limits on inflation policy processed by the Federal Reserve Bank and its chairman.

Congressman Saxton (RNJ), who represents most of Ocean County, is a member of the Joint Economic Committee which monitors economic and fiscal policy for the U. S. Senate and the House Of Representatives.

Need To Keep Interest Rates And Mortgage Rates As Low As Possible

Saxton told CNBC business channel Squawk Box that the new proposed mandatory inflation targets were needed to make sure the next fed chairman is as attentive as incumbent Fed Chairman Alan Greenspan to the need to keep interest rates and mortgage rates as low as possible.

Saxton Not Questioning Current Fed Policy

Saxton said he had in mind a range of 1% to 3% inflation a policy objective which the congress would convert into a new regulation for the Fed, an agency which, currently, is not encumbered by any such guidelines.

Saxton made it clear that he supported Greenspan’s policies, and emphasized that he was not questioning current Fed policy.

CNBC Anchor
Mark Haines

Mark Haines: “Why Do We Need To Codify This?”

“Why do we need to codify this?”, asked CNBC anchor Mark Haines, “Why not continue to give them latitude?”

“Price stability is one of the most important factors in the market”, Saxton said, “we should formalize a process that has been ongoing.”

Saxton’s appearance on CNBC comes six weeks after his colloquy with Greenspan on the federal budget and deficit situations in the current economic climate. 7/04/03

Click here for OceanCountyPolitics coverage of the intelligent questions and answers in the follow-up on the May HardCopy edition which promised a report on the joint Economic Committee meeting where Saxton led off with a series of questions for Federal Reserve Chairman Alan Greenspan, who testified on current economic policy.