A prominent economist close to former Federal Reserve official Kevin Warsh has sharply criticized colleagues who claim current interest rates remain too tight, dismissing their arguments as "ridiculous." The remarks highlight a growing internal debate within the central bank about whether monetary policy is still overly restrictive, with some officials warning of lingering economic risks. The pushback underscores divisions over whether further rate cuts are warranted or if the Fed should hold steady amid mixed signals on inflation and economic growth. The comments come as policymakers weigh the balance between cooling price pressures and supporting a still-uneven recovery.
Close ally of Kevin Warsh says Federal Reserve officials who argue rates are restrictive are ‘just ridiculous’
