Key Insights:
- Howard Lutnick criticizes the Fed for keeping rates high despite economic growth.
- U.S. inflation is under 3%, but the Fed’s policies are limiting potential growth.
- Lutnick argues that the Fed’s fear of acting is hurting the U.S. economy and risk assets.
- A more confident approach could unlock additional economic potential, according to Lutnick.
Fed’s Reluctance to Act Hurting U.S. Economy
Howard Lutnick, a prominent figure in the business world, sharply criticized the Federal Reserve’s approach to managing interest rates. Lutnick argued that the U.S. economy is growing, inflation is under control at less than 3%. Energy prices are falling, yet the Federal Reserve continues to keep interest rates high.
He believes this cautious stance is preventing the economy from reaching its full potential. Lutnick emphasized that Fed Chairman Jerome Powell, instead of being “late” in responding to the economic recovery, is now “too afraid” to take action that could benefit the economy.
COMMERCE SECRETARY: THE FED IS TOO SCARED TO CUT AND IT’S HURTING AMERICA
Howard Lutnick went off on TV today, saying the U.S. economy is growing, inflation is under 3%, energy prices are falling… and yet the Fed is still keeping rates way too high.
He said Powell isn’t “late”… pic.twitter.com/ejejBYunGH
— CryptosRus (@CryptosR_Us) December 11, 2025
According to Lutnick, Powell’s hesitation to lead could be stalling growth in an economy that is showing signs of strength. “America should be leaning forward with confidence,” Lutnick stated, criticizing the Fed’s reluctance to act.
A Strong Economy Facing Unnecessary Challenges
Lutnick pointed out that the U.S. economy is in a much better position than it might appear at first glance. With inflation at a manageable level of under 3% and energy prices dropping, the economy is showing clear signs of growth. Yet, the Federal Reserve’s decision to keep rates high is seen by Lutnick as an unnecessary burden.
The Fed’s cautious policies may be holding back both economic expansion and the performance of risk assets. Lutnick’s message to the public and policymakers is that the country should not be overly cautious.
Instead of preparing for an impending crisis, the U.S. should be moving forward with optimism and confidence. Lutnick suggests that the Fed’s fear of making bold decisions could be preventing the economy from reaching its full potential.
The Risk of Missed Opportunities for Growth
The U.S. economy has potential to perform even better if the Fed’s actions align with the current economic conditions. By maintaining high interest rates, the Federal Reserve is limiting the ability of businesses and investors to capitalize on growth opportunities. These missed opportunities could be costing the economy considerable growth.
