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Ford CEO Mulally Urges Fed Rate Cut

CNNMoney,
Posted: 2007-08-24 11:35:57
NEW YORK (Aug. 24) -- Ford CEO Alan Mulally became the latest high-profile business executive to suggest that the Federal Reserve needs to cut interest rates, according to a report published Friday.

Ford CEO Alan Mulally
AP

Noting that credit conditions were posing a "big headwind" to the company's turnaround plan, Mulally told the Financial Times he is concerned about the state of the larger economy.

"It is a really important job to manage inflation and economic growth [but] focusing on economic growth appears to be a really important priority now," Mulally told the paper, hinting that the central bank needs to take action.

The Federal Reserve, which works to keep inflation in check and promote economic growth, has resisted calls to lower the federal funds rate from its current level of 5.25 percent.

The key interest rate, which has remained unchanged since June 2006, directly impacts consumer loan rates on everything from credit cards to auto loans.

Other executives have directly called on Federal Reserve Chairman Ben Bernanke and his fellow policymakers to lower interest rates, including recently installed Chrysler chief and former Home Depot CEO Bob Nardelli, according to the paper.

Mulally has attempted to turn around the embattled automaker as it faces competition from overseas and a weakened sales environment. Ford's CEO said he expected the company to return to profitability in 2009.

Ford shares slipped over 1 percent in Thursday trade on the New York Stock Exchange.

2007-08-24 07:51:01
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Recent Comments

1 - 10 of 416
416 comments

Niecy1217 10:14:07 AM Aug 29 2007

Just some info for some of you. GM build a conpletely electric car EV1, a car that had NO problems. They only would rent the car so when they decided that they were not making enought money off then they repossesed them and CRUSHED then. These were FULLY WORKING cars. They were only available in Calafornia. Then after they pulled the cars and Government changes the terms of there mandate for more fuel efficant cars and guess what we have now the hybrid!!! Yes the government is being ruled by the Oil Companys, the car companys, and anyone else out there that is not pushing for technology that has already been produced and is here NOW!!!! Consumers are a big part of why there are not more fuel effecent cars. We must push for better or we will only get worst.

melbournebeach 09:41:00 AM Aug 27 2007

LEAVE THE RATES ALONE AND LET THE PEOPLE THAT WERE TOO STUPID TO READ THEIR LOAN AGREEMENTS OR BOUGHT HOMES THEY COULD NOT AFFORD LOSE THEIR HOMES AS THEY SHOULD.

cger529577 07:28:00 AM Aug 27 2007

Looks as if Mulally is beginning to "waffel". A rose by any other name is still a rose. To call a 500 a Taurus does not make it so. Past performance is not indicative of the future, no matter what the name. Quit back sliding by using the Feds and the interest rate as a remote reason for the problem and focus on the product. You took the job with your eyes wide open.Quit whining. Roll up your sleeves and go to work. We are counting on you.

orbitxal1 07:15:00 AM Aug 27 2007

Is this a good idea, an overpaid CEO asking for a rate cut?

kgr0506 01:59:29 AM Aug 27 2007

American business should be focusing on what people want, not telling people what they want. They push big SUV's, and the most expensive models they have, which are inferior to the German and Japanese models, which are made by engineers who are devoted to their craft - Look at a Volkswagon, then any American cars -

honeyspcg 01:31:00 AM Aug 27 2007

My brother has a mechanic business and says Hyundai's are good vehicles.

honeyspcg 01:30:00 AM Aug 27 2007

Hey I got a question. Purchased a 2007 Dodge Durango SUV. Sticker says it would get 16/20. We're getting 20 on the highway, but only 11 in town. What's with this?
Can anything be done to boost it's gas mileage?

honeyspcg 01:28:00 AM Aug 27 2007

They can put a man on the moon, but can't design an engine that gets 50 mpg or more. Are they in cahoots with the oil companies?

honeyspcg 01:26:00 AM Aug 27 2007

Purchased a 2005 Dodge Caravan brand new for $32K. Took it in for a trade in 2 yrs later and they wouldn't even pay off the loan $16K. The most they would pay for it was $10K. Similar vans on the lot were selling for $15K or more. It only had 21K miles on it. Our friend had a 2004 Toyota Van with 65K miles on it and got $18K for it. I guess the moral of the story is: Buy foreign made vehicles. The USA companies don't back their own vehicles.

orionvibe 12:55:00 AM Aug 27 2007

I have a Ford Explorer Sport, still owe 3 years on it, but it has given me enough problems to force me to buy anything but a Ford, previously I had a Ford Escort for 2 years, out of a 5 year loan, that one too begun to give me problems, but I traded it in because Ford offered 0% interest. I still owe a 1988 Toyota Corrolla and it still runs with less problems then both Fords. I wish to support Ford but I have no choice to go somewhere else.
Plus, I hate my interest on my credit cards but can I bitch to someone and have them lowered? NO, I'm stuck. Built better cars and we will buy them!

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