Federal Reserve Harker: Further Rate Cuts Could Pose Financial Stability Risks

By: theblockbeats.news|2025/11/20 14:15:57
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BlockBeats News, November 20th, the President of the Federal Reserve Bank of Cleveland, Loretta Mester, warned on Thursday that further interest rate cuts at this point would pose widespread risks to the economy. Given that inflation has remained persistently above the Federal Reserve's 2% target, "lowering rates to support the labor market may prolong this period of high inflation and also might encourage risk-taking behavior in financial markets." Mester noted that in the context of rising stock prices and "easy" credit conditions, the current financial environment is "quite accommodative," explaining that further easing of credit costs in such a situation "may support riskier loans." (FX Street)

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