Reported about 1 year ago
Three Democrat senators called on the Federal Reserve (Fed) to cut the federal funds rate from its current high of 5.5 percent, stating that the prolonged high-interest rates are slowing the economy and not addressing key drivers of inflation. They argue that the restrictive stance on interest rates is exacerbating inflation by increasing housing, construction, and auto insurance costs, potentially leading to a recession and job losses. The senators suggested the Fed should follow the European Central Bank's approach and move away from the 2% inflation target, which might help prevent economic slowdown caused by tight financial conditions.
Source: YAHOO