U.S. Lawmakers, Led by Warren, Urge Fed to Cut 5.5% Interest Rates Amid Economic Concerns

Jun 11, 2024, 01:58 PM

Several U.S. lawmakers, including Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper, are urging Federal Reserve Chair Jerome Powell to cut interest rates. They argue that the elevated rates have sufficiently cooled the economy over the past two years and are now threatening economic stability. The call for rate cuts is also supported by Representative Brendan Boyle and Senator Whitehouse, who highlight the impact on American families' ability to afford homes. The lawmakers' letters emphasize that the current high interest rates, at a two-decade-high of 5.5 percent, are slowing down the economy and not effectively reducing inflation. This political pressure comes ahead of the upcoming U.S. elections, with some suggesting that the rate cuts could benefit risk-on assets like Bitcoin and crypto. The request comes just 120 days before the election.