Senator Elizabeth Warren (D-MA) has blasted Federal Reserve Chairman Jerome Powell over comments he made about the interest rate.
Powell said that increasing interest rates would help cool down inflation, however he did also acknowledge that this would bring “pain” to some households. “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell said.
Warren hit out at Powell’s remarks and questioned the wisdom of hiking up interest rates in a volatile market and world.
“I am very worried 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 supply chain kinks, that we still have a war going on in Ukraine that drives up the cost of energy, and that we still have these giant corporations that are engaging in price gouging,” Warren told CNN’s Dana Bash during an appearance on “State of the Union.”
“There is nothing in raising the interest rates, nothing in Jerome Powell’s tool bag, that deals directly with those, and he has admitted as much in congressional hearings when I’ve asked him about it,” Warren went onto say, adding: “Do you know what’s worse than high prices and a strong economy? It’s high prices and millions of people out of work.”
Warren added: “I’m very worried that the Fed is going to tip this economy into recession.”
During a senate hearing in June, Warren made similar points stating that great care should be taken when increasing the interest rates as this could lead to financial problems for many families and a possible recession for the country.
“You know what’s worse than high inflation and low unemployment? It’s high inflation with a recession and millions of people out of work. I hope you consider that before you drive this economy off a cliff,” Warren said to Powell.
ARTICLE: PAUL MURDOCH
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: THE HILL
Latest posts by Paul Murdoch (see all)
- Homeless cabins built along prime riverside real estate in Portland - April 12, 2023
- Russia starts fuel supplies to Iran by rail, sources say - April 12, 2023
- Eyeing re-election, Ted Cruz seeks to build bipartisan image - April 11, 2023