3 Democrats call for interest rate cut ahead of pivotal Fed meeting

Powell has said the Fed will keep raising rates until inflation is tamed,

But some economists say the Fed is moving too quickly and could trigger a recession.

Three Democratic lawmakers are calling on the Federal Reserve to cut interest rates ahead of the central bank's pivotal meeting next week.

In a letter to Fed Chair Jerome Powell, Sens. Elizabeth Warren (Mass.), Sherrod Brown (Ohio), and Jeff Merkley (Ore.) argue that the Fed's aggressive interest rate hikes are "unnecessarily harming" the U.S. economy.

"We are deeply concerned that the Federal Reserve's rapid pace of interest rate increases is putting the economy at risk of a recession," the lawmakers wrote.

"The Fed's actions are making it more expensive for families to buy homes, for businesses to invest, and for state and local governments to provide essential services.

The Fed has raised interest rates four times this year in an effort to tame inflation, which is running at a 40-year high.

Powell has said that the Fed will keep raising rates until inflation is tamed, but some economists say the Fed is moving too quickly and could trigger a recession.

"The Fed is raising rates too quickly and too aggressively," said Mark Zandi, chief economist at Moody's Analytics.

"I think they're going to cause a recession," he said.

The Fed is scheduled to meet next week to discuss interest rates.

The central bank is widely expected to raise rates by another 0.75 percentage points, but some economists believe the Fed could opt for a smaller increase.

The Fed's decision will be closely watched by markets and economists.

Conclusion

The Fed's decision on interest rates will have a major impact on the U.S. economy.

If the Fed raises rates too quickly, it could trigger a recession.

However, if the Fed raises rates too slowly, it could allow inflation to continue to rise.

The Fed is facing a difficult challenge, and its decision will be closely watched by markets and economists.