"Yes, I think the Fed should cut rates. I think the Fed should have more control of the housing market. The people who think this problem will go away are wrong. We need to fix this problem before this problem gets out of control. “ – Jonathan, Alabama
“A rate cut would help but so would property tax relief. In my neighborhood property values have doubled over the past 10 years but property taxes have quadrupled. What do you do when your mortgage payment keeps going up?” --Claire D., Georgia
“No. The Fed should increase interest rates. The spread is already too big and lending practices are too lax. We have massive trade and budget deficits and need to defend the dollar, If the Fed cuts interest rates it would fuel inflation and cause imports like oil to rise even further and all imports would cost more….There’s too much cheap money, cheaper money will make things far worse." – Smitty, California
“Yes. Let's start heading off this latest problem early! Why wait until the foreclosure rate increases to a point unmanageable. It's obvious to the most casual observer what's on the horizon.” -- J. Wesley, Texas
“Absolutely not. The Fed should not micro-manage the economy and should definitely not try to manage the stock market or the real estate market. Fed funds are neutral after years of free money. Wake up America. The free money gravy train is over. -- Lloyd W., Georgia
"It is irrelevant whether the Fed cuts rates. Look at the example of Japan in the last decade. Their central bank cut rates to ZERO and it was not enough to stimulate a significant recovery. There is too much debt out there, and too little risk premium in a large variety of risky investments. We are living in a house of cards that will collapse before things will get back to anything resembling 'normal.' The only question in my mind is how many institutions we have come to trust will fail before this slow motion collapse comes to an end." -- Rich G., Illinois
"The Federal Reserve has crushed consumer confidence over the 17 raises. No small and medium size business can withstand such hikes. The cost for a loan, more than doubled. And inflation is not the key. The federal reserve has lost their marbles. The 12 board members do not have any understanding of what makes our country great. Just looking over statistics that are sometimes more than 9 months old, as in the case of homebuilding and mortgages, is stupid and ridiculous. I have written numerous letters to the FED. In Atlanta and Washington. The only way to keep the economy from falling hard is to reduce rates. We are at a national crisis. With the war in Iraq, as well as the 17 raise, consumers get the idea that government does not care about business. The housing industry has been abandoned. And it is the only industry that needs confidence from a consumer to buy a very big ticket item, a home, the America dream. With local government regulations increasing, we did not expect the federal reserve to the enemy of business. By fighting inflation, they have lost the goal of keeping the people happy in this country. We do not need a 9/11 emergency for the fed to lower rates and keep it low. The real emergency is for consumers not to buy homes that house all the other purchases. Lower the rates. We already in trouble." -- Itchko Ezratti
"Absolutely not! Lowering rate would set up economy for hyperinflation along with abandonment of foreign investment keeping our debt funded. The horse has left the barn and it is too late to compensate." -- Travis E., California
"Only if the Fed wants inflation that will be a repeat of the late '70s era." -- Randy J., California
"Yes, absolutely, the sub-prime woes today should be the loudest indicator, along with the deliquencies. The mid level incomes in America can no longer afford homes, and the lower income have been taken advantage of by the lending industry with the sub-prime product, through over-selling the American dream. The fed chairman needs to get responsible to middle america on his decision making." -- Kristie K., Illinois
"I agree with the Countrywide CEO. The market always overdoes things but if government policy is to increase homeownership among poorer people then the Fed must lower interest rates. People are being hurt by high interest rates on credit card balances which reduces the amount left for mortgage/rent payments. If the Fed will reduce rates that would help ease that problem." -- Ed., Arizona