Senate Democrats Seek Another 50 Basis Points Rate Cut from the Fed

Democrats on Capitol Hill are demanding another significant interest rate cut from the Fed this week to reduce housing costs. Senator Elizabeth Warren has called for a 50 basis point reduction in the federal funds rate. Warren and Senator John Hickenlooper stated, "If the Fed goes for more rate cuts, housing prices and mortgage rates are likely to drop, allowing more families to achieve the American dream." In a joint statement with Senator Hickenlooper, Warren emphasized that such a cut would help reduce borrowing and housing costs, enabling more families to become homeowners. "Recent economic data shows that inflation has fallen to 2.1%, the lowest level since February 2021. Given this inflation data, there is no need for restrictive interest rates. Even if the economy continues to remain strong, worker demand may be decreasing due to the Fed's restrictive monetary policy," she said.