3 Democratic senators urged Jerome Powell for a 75 bps rate cut to prevent recession.

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Three Democratic senators—Elizabeth Warren, Sheldon Whitehouse, and John Hickenlooper—have indeed sent a letter to Federal Reserve Chair Jerome Powell, urging a 75 basis points (bps) rate cut12. They argue that such a cut would help protect the U.S. economy from potential harm and mitigate risks to the labor market.

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A 75 bps cut would bring the federal funds rate to 4.5 – 4.75%, which is still higher than it was at any point between November 2007 and January 2023. The senators believe that a more aggressive rate cut is necessary to avoid a potential recession.

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Sources:

https://www.msn.com/en-us/money/markets/democratic-senators-call-on-fed-to-cut-rates-by-75-basis-points/ar-AA1qFdtV

https://www.yahoo.com/news/democratic-senators-call-fed-cut-135031279.html