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

Fed Chair Jerome Powell is testifying in Washington this week before addressing inflation in new reports.

Federal Reserve Chair Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing on the semiannual monetary policy report to Congress at the U.S. Capitol on July 9, 2024. Bonnie Cash/Getty Images

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 semiannual 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.”