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Sen. Elizabeth Warren (D-MA) on Thursday urged the Federal Reserve to start reducing interest rates after the European Central Bank cut borrowing costs for the first time in nearly five years.
“As Europe lower rates even more, [Fed Chair] Jerome Powell needs to get with the program,” Warren wrote in an X post. “It’s time for the Fed to cut interest rates.”
The ECB isn’t the only monetary authority in easing mode. The Bank of Canada on Wednesday reduced its policy rate by 25 basis points, and, in March, the Swiss National Bank lowered its key rate by 25 bps.
With inflation remaining sticky, markets have been divided on whether the Fed will start cutting rates in September or November, but the consensus is that there will be no more than two cuts by the end of 2024.
Earlier on Thursday, Bloomberg reported that ECB policymakers appear to be all but ruling out another rate cut at the bank’s next meeting in July.
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