This is because corporate and household loans in many cases are based on these rates and, thus, I believe the most effective way to support the economy is to lower them.
7  See Wayne Passmore (2005), "The GSE Implicit Subsidy and the Value of Government Ambiguity," Finance and Economic Discussion Series 2005-5 (Washington: Board of Governors of the Federal Reserve System, January) (forthcoming in Real Estate Economics); Wayne Passmore, Shane M. Sherlund, and Gillian Burgess (2005), "The Effect of Government Sponsored Enterprises on Mortgage Rates," Finance and Economic Discussion Series 2005-6 (January) (forthcoming in Real Estate Economics); and Andreas Lehnert, Wayne Passmore, and Shane M. Sherlund (2005), "GSEs, Mortgage Rates, and Secondary Market Activities," Finance and Economic Discussion Series 2005-7 (January).