House Lawmaker Calls for Urgent Interest Rate Cuts to Avert Recession
- Rep. Ritchie Torres has called on the Federal Reserve to lower interest rates promptly.
- He warns that failure to do so could lead to significant economic crisis.
- This call comes as concerns rise over the current economic conditions.
A Democratic lawmaker is pressing the Federal Reserve to promptly reduce interest rates, warning that inaction could lead the nation into a recession. Rep. Ritchie Torres of New York, a member of the House Financial Services Committee, expressed his concerns in a letter to Fed Chairman Jerome Powell, emphasizing that the central bank has prioritized price stability over maximum employment, which he believes is detrimental to the economy. Torres referenced the disappointing July jobs report, which revealed a significant slowdown in job growth, with only 114,000 jobs added—well below expectations. Additionally, the unemployment rate rose from 4.1% to 4.3%. He cautioned that the longer the Fed delays in cutting interest rates, the higher the risk of a recession, framing the situation as a policy choice that the Fed can influence. The lawmaker criticized the current high interest rate policy, describing it as "kamikaze" and harmful to families and businesses. A spokesperson for the Fed confirmed receipt of Torres' letter and indicated that a response is forthcoming. The recent volatility in the stock market, coupled with the lackluster jobs report, has intensified calls for the Fed to act swiftly to lower rates to prevent a serious economic downturn. In a recent press conference, Powell acknowledged the complexity of the decision but hinted that the Fed may consider rate cuts in its upcoming meeting, contingent on supportive economic data.