The Conservative Cave
Current Events => General Discussion => Topic started by: Ralph Wiggum on September 17, 2024, 01:47:52 PM
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Sen. Warren tears into Fed while doubling down on calls for massive rate cut: 'Putting the economy at risk'
Massachusetts Sen. Elizabeth Warren slammed Federal Reserve Chair Jerome Powell for "putting the economy at risk" on Tuesday, while doubling down on demands that the Fed cut rates by an ambitious 75 basis points. "The Fed chair has already said he's waited too late. He has already indicated that there were economic consequences of having held interest rates too high for too long. The data show us that inflation is down. He should have lowered these interest rates earlier," Warren told FOX Business correspondent Hillary Vaughn.
"He needs a bigger cut so that he shows that he finally gets it and that he is not making a deliberate effort to crash this economy," she continued. Her remarks came as investors bet on the odds of a 25-point decrease or a more ambitious 50-basis point cut that fellow Democrats have widely demanded. Any cut would mark the first since 2020.
Warren doubled down on criticizing Federal Reserve Chair Jerome Powell in her talk with Vaughn, accusing him of "putting our economy at risk." "It is time to lower the interest rate. I believe it should go down by 75 basis points. He needs to signal to the market that he finally gets it and that his job is to keep this economy steady," she continued. Warren and Senate colleagues Sheldon Whitehouse, D-R.I., and John Hickenlooper, D-Colo., also penned a letter to Powell on Monday, urging the aggressive rate cut, warning that delays in doing so "have threatened the economy and left the Fed behind the curve."
https://www.foxbusiness.com/media/sen-warren-fed-calls-massive-rate-cut-putting-economy-risk
If the Fed dropped it by 75 basis points tomorrow (it won't most likely 25, an outside chance of 50), inflation would run wild and the stock market would plummet. The market is already pricing in a 25 point cut, and a further one would be an uncontrollable disaster. But then again, she is a Democrat.
:mental: :mental: :mental: