The Federal Reserve Board’s decision Wednesday to lower interest rates by a half-percentage point is a welcomed initiative.

Saturday, February 03, 2001

The Federal Reserve Board’s decision Wednesday to lower interest rates by a half-percentage point is a welcomed initiative.

Lowering the federal funds rate to 5.5 percent marks a full point reduction since Jan. 3. The result should mean lower lending rates at financial institutions.

The Fed’s actions certainly signal deep concern regarding the state of the economy. While indications suggest the economy is growing at a slower rate then in the recent past, it should be noted the economy is still growing.

In Austin and the surrounding area the economy remains strong. Essentially the only blip on the local economy is the winter weather conditions and the associated rising cost of natural gas and electricity. Strip away the higher heating bills we’re all experiencing and the reality is our economy is essentially not being negatively impacted.

Local companies continue to produce and sell products as well as search for more laborers to expand work forces. In addition consumers continue to show confidence in the economy with continued purchases of large ticket items such as homes and automobiles.

While the local economy is not isolated from what happens nationally, it appears to be insulated from many of the ills other parts of the nation may be experiencing.

Like anything the condition of the economy is often impacted by our attitude. If we feel insecure and expect the worse, then bad things will probably happen. However, if we recognize the positive signs that exist in our economy and continue to build on those positives, we will avoid any possible pitfalls.

So when you think about how things are in Austin, Minn., ask yourself what’s really changed. The answer is: Only those darn heating bills. Fortunately those bills will soon melt away, leaving a minor bump in an otherwise solid local economy.