Boyle Statement on July Fed Interest Rate Decision

WASHINGTON, D.C. — Today, Pennsylvania Congressman Brendan F. Boyle, Ranking Member of the House Budget Committee, released the following statement after the Federal Open Market Committee (FOMC) announced it was maintaining the current interest rate target range:

“As I have said time and time again, the Fed must stop risking our economic growth and begin lowering rates,” said Ranking Member Boyle. “The evidence is clear: PCE inflation is down from 7.1 percent in June 2022 to 2.5 percent in June 2024. As a matter of fact, in June, 3-month annualized PCE-equivalent inflation was just 1.5 percent. With inflation nearing the Fed’s stated target, the possibility of a costly overcorrection that throws millions of Americans out of work can no longer be ignored. Keeping interest rates too high for too long means keeping housing costs high, risking livelihoods, and threatening our world-leading economy. In September, the Fed must begin cutting rates.”

Ranking Member Boyle has consistently warned of the risk that the Fed’s historically high interest rates pose to our economy. Last month, he sent a letter with Senate Budget Committee Chairman Sheldon Whitehouse to Federal Reserve Chair Jerome Powell calling on the Fed to begin lowering rates. This January, he firmly called for the Fed to respect its dual mandate and begin cutting rates in 2024.

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