Fed Chair Powell says holding rates high for too long could jeopardize economic growth
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Federal Reserve Chair Jerome Powell expressed concern that holding interest rates too high for too long could jeopardize economic growth. Powell stated that reducing policy restraint too late or too little could unduly weaken economic activity and employment. The Fed's overnight borrowing rate currently sits at a range of 5.25%-5.5%, the highest level in 23 years. Markets expect the Fed to begin cutting rates in September and likely follow up with another quarter percentage point reduction by the end of the year. Powell emphasized the importance of the Fed's operational independence and stated that recent data shows the US economy continues to expand at a solid pace despite the deceleration in GDP.

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https://www.cnbc.com/2024/07/09/fed-chief-powell-says-holding-rates-high-for-too-long-could-jeopardize-economic-growth.html