Commerce Chief Lutnick Says Powell’s High Rates Cost US $700 Billion a Year

U.S. Commerce Secretary Lutnick publicly criticized Federal Reserve Chair Jerome Powell on Sunday, saying monetary policy has been kept “way too high” for too long. According to Lutnick, the elevated borrowing costs are weighing heavily on economic activity and government finances. Lutnick estimated the prolonged stance is costing the United States about $700 billion each year, without specifying the methodology behind the calculation. The comments add to growing political pressure on the Fed as it weighs whether to begin cutting its benchmark rate, which policymakers have held steady since late 2024. Powell has not yet responded to the remarks. The Fed maintains that policy decisions are guided by its dual mandate of price stability and maximum employment.