Warren calls for emergency-like Fed rate cut ASAP
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On September 18, 2024, Senator Elizabeth Warren, along with Senators Sheldon Whitehouse and John Hickenlooper, urged Federal Reserve Chair Jerome Powell to implement a dramatic interest rate cut of three-quarters of a point at the upcoming monetary policy meeting. They argue that the Fed's current high rates are harming the job market and that inflation is moving towards the target of 2 percent. Despite Wall Street's skepticism about such a large cut, with a 100% chance of a rate cut on Wednesday but only a 37% chance of a quarter-point cut and 63% for a half-point cut, Warren warns that delays could risk recession. Former Fed president Bill Dudley dismissed the idea of a mega cut, emphasizing that it is unlikely to happen. The Fed typically cuts rates by a quarter-point, with larger cuts reserved for emergencies, as seen in early 2008 and March 2020 during the Covid crisis.
#FederalReserve #InterestRates #ElizabethWarren #Economy #Recession #JobMarket #Inflation #Senate #FinancialMarkets #WallStreet
https://whdh.com/news/warren-calls-for-emergency-like-fed-rate-cut-asap/
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