Saturday, August 23, 2025

Warren, Hickenlooper Push Fed for 50 Bps Rate Cut

Democratic Senators Elizabeth Warren of Massachusetts and John Hickenlooper of Colorado have urged the Federal Reserve to implement a 50 basis point reduction in the federal funds rate at the upcoming November Federal Open Market Committee meeting.

Their call comes as recent data shows inflation has fallen to 2.1%, the lowest level since February 2021. The Fed has previously noted increased confidence in inflation trending toward their 2% target, stating that risks to employment and inflation goals are roughly balanced. It also follows the Fed’s September decision to lower rates by 50 basis points, marking the first reduction since 2020.

Despite overall economic strength, recent labor market indicators present a mixed picture. While unemployment claims have decreased, there has been an uptick in the number of Americans receiving unemployment benefits, suggesting potential challenges in job placement for those out of work.

The senators emphasized the persistent issue of high borrowing and housing costs. They argue that reducing interest rates could stimulate housing construction by lowering capital costs, potentially addressing inflation through increased housing supply and subsequent price reductions. Current high interest rates, they contend, have hampered housing construction activity.

According to Warren and Hickenlooper, further rate cuts could lead to decreases in both housing prices and mortgage rates, making homeownership more accessible to American families. Their advocacy comes as the Fed weighs its monetary policy options amid evolving economic conditions.

The next rate decision from the Federal Reserve is expected on November 7.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Fed Officials Signal Intent to Wind-Down Stimulus as Early as This Year

Oil and other commodities were under pressure on Thursday, after the Federal Reserve finally indicated...

Friday, August 20, 2021, 10:50:00 AM

US Fed Allows SLR Exemption to Expire

The US Federal Reserve has decided not to extend a regulatory rule imposed during the...

Friday, March 19, 2021, 12:04:29 PM

Larry Summers Delivers Austerity Message While Reclining in Tropical Paradise

Former Treasury Secretary Larry Summers recently applauded the Federal Reserve for their stance on unemployment...

Friday, January 13, 2023, 02:22:00 PM

Fed Officials Scramble to Avert Major Policy Error, But Could It Be Too Late?

It appears that Fed officials have finally come to the realization that the hottest inflation...

Sunday, April 10, 2022, 11:02:00 AM

Federal Reserve has Begun Purchasing Corporate Debt ETFs

As promised, the Federal Reserve has now begun purchasing corporate bond exchange-traded funds, as a...

Sunday, May 17, 2020, 12:21:00 PM