Fed Chair Powell Warns: High Interest Rates May Harm Economic Growth

#FederalReserve #EconomicGrowth #InterestRates

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Federal Reserve Chair Jerome Powell emphasized that keeping interest rates high for too long could jeopardize economic growth. This cautionary note comes as the Fed continues to balance inflation control with the need to support economic expansion.

Powell's remarks highlight the delicate nature of monetary policy, where the central bank must carefully weigh the risks of inflation against the potential for economic stagnation. The Fed has been maintaining high interest rates to combat inflation, but Powell acknowledges that prolonged high rates could have negative consequences.

The Fed chair's comments suggest that the central bank is closely monitoring the economy and is prepared to adjust its policies as needed to ensure sustainable growth. This nuanced approach underscores the complexity of managing the economy and the importance of careful decision-making.

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