Fed Chair: Leaving Interest Rates Too High for Too Long Could Harm US Economic Growth

Federal Reserve Chair Jerome Powell warned lawmakers on Capitol Hill that leaving interest rates too high for too long could threaten the U.S. economy. Appearing before the Senate Banking Committee for his semi-annual monetary policy report to Congress on July 9, Mr. Powell expressed concern that pivoting on monetary policy too early or too late “could unduly weaken economic activity and employment.” “At the same time, in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face,” the Fed chief said in prepared remarks. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.”...