Senator Elizabeth Warren, a Democrat from Massachusetts, said Sunday she was “deeply concerned” by the Fed’s actions. taming inflation It will put “millions” of Americans out of work.
During an appearance on CNN’s “State of the Union,” Warren said she was concerned that the Federal Reserve would continue to revalue interest rates It could “push” the country into recession.
“I am very concerned about this, because the causes of inflation, things like the fact that COVID is still shutting down parts of the economy around the world, that we still have our supply chain kinks, that we still have an ongoing war in Ukraine that drives up the cost of energy and that we We still have these giant companies involved in price gouging.”
“There’s nothing in raising rates, nothing in Jerome Powell’s toolkit that deals directly with those, and he admitted that in congressional hearings when I asked him about it,” she continued. “Do you know what’s worse than high prices and a strong economy? It’s high prices and millions of people are out of work. I’m very worried the Fed is going to push this economy into recession.”
Federal Reserve Chairman Jerome Powell Friday delivered a stark message about the state of the US economy at the central bank’s annual meeting in Wyoming: Inflation remains painfully high, and calming it will require strong action that could soon bring “pain” to households and businesses across the country.
In his much-anticipated address at the Federal Reserve’s Jackson Hole Symposium in Kansas, Powell reiterated his pledge to fight inflation “vigorously” which is still near the highest pace in 40 years and close to the Fed’s 2% target.
“While high interest rates, slow growth, and weak labor market conditions will bring inflation down, they will also cause some pain to households and businesses,” he said. “These are the unfortunate costs of lowering inflation. But failure to restore price stability will mean much more pain.”
Even with four consecutive interest rate increases, including two in a row of 75 basis points, Powell stressed that the Fed was in no place to “pause or pause” — an unwelcome signal to investors who had been expecting a rate cut. . Next year.
Fox News’ Megan Heaney contributed to this report.