Manzullo to Greenspan: Interest rate hike would stunt U.S. economic recovery

On May 10, House Small Business Committee Chairman Don Manzullo (R-IL) urged Federal Reserve Board Chairman Alan Greenspan to keep interest rates level as U.S. companies emerge from recession and begin to put Americans back to work. In a letter to Chairman Greenspan, Manzullo said any interest rate hikes in the near future would stunt the emerging economic recovery in the U.S.

"Finally, we are starting to see signs of recovery. Orders are building. Confidence is growing. Employers are hiring," Manzullo said. "But the situation is still very fragile. Hiking interest rates would stifle the growth. Companies would pull back their expansion and job creation plans. The economic recovery would cease, and too many Americans would remain out of work."

Manzullo, who has chaired more than 60 committee hearings on the importance of manufacturing in America, said U.S. manufacturers lost jobs for 43 consecutive months before starting to post modest gains a few months ago. Manufacturers have gained back just 38,000 jobs the last three months after losing more than three million jobs the last four years. In addition, many manufacturing regions of the country still are suffering from double-digit unemployment, including Rockford, Ill. (which is in Manzullo's district), with a 10.4 percent unemployment rate.

"Our employers continue to face extreme economic pressures due to surging energy and health care costs," said Manzullo. "The last thing we should do is take away the one thing that has provided them relief throughout these tough economic times - low interest rates."