Former World Bank President David Malpass criticized the U.S. Federal Reserve for keeping its benchmark interest rate elevated, during a July 2 interview with CNBC.
The Fed began raising rates from near zero in 2022 in a bid to rein in inflation. They peaked at 5.5 percent in 2023. The central bank then cut rates multiple times last year, bringing them down to a range of 4.25 to 4.5 percent.
Last month, the Fed left rates unchanged for the fourth straight meeting.
“The Fed has the rates too high. And the question is when are they going to cut and find an exit strategy from what they’re doing,” Malpass said. “The Feds have created all these problems, these cycles of inflation and deflation. And I think there has to be a full remaking of their models. Trump’s trying to do that but it’s going to take time.”…