Sen. Elizabeth Warren, D-Mass., said Sunday she is “very concerned” that the Federal Reserve’s measures to reduce inflation 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 Fed’s continued rate hikes could “lead” the country into a recession. “I’m very concerned about that because the causes of inflation, 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’s driving up the cost of energy and that we still have these giant companies indulging in price gouging,” he said. “There’s nothing in raising interest rates, nothing in Jerome Powell’s tool bag that directly deals with them, and he’s admitted as much in congressional hearings when I’ve asked him about it,” he continued. “You know what’s worse than high prices and a strong economy? It’s high prices and millions of people out of work. I’m very worried that the Fed is going to drive this economy into a recession.” Sen. Elizabeth Warren speaks during a press conference at the U.S. Capitol on July 22, 2020. (Drew Angerer/Getty Images / Getty Images) FED’S POWELL PLEDGES TO FIGHT INFLATION ‘HARD’, BUT WARNS OF FINANCIAL PAIN AHEAD Fed Chairman Jerome Powell on 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 cooling it will require aggressive action that could soon bring “pain.” to households and businesses nationwide. Sen. Elizabeth Warren and other progressive lawmakers call for the reimposition of a national eviction moratorium on Capitol Hill, Sept. 21, 2021. (AP Photo/J. Scott Applewhite / AP Images) In his much-anticipated speech at the Federal Reserve’s Jackson Hole symposium in Kansas, Powell reiterated his commitment to “vigorously” combat inflation still running near its hottest pace in 40 years and fight it closer to its 2 % of the Fed. Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington, July 27, 2022. (AP Photo/Manuel Balce Ceneta/AP Images) “While higher interest rates, slower growth and softer labor market conditions will reduce inflation, they will also bring some pain to households and businesses,” he said. “That is the unfortunate cost of reducing inflation. But a failure to restore price stability would mean much greater pain.” CLICK HERE TO READ MORE ABOUT FOX BUSINESS Even with four consecutive rate hikes, including two consecutive 75-basis-point hikes, Powell stressed that the Fed is not in a position to “stop or stop” — an unwelcome sign for investors who have been anticipating a rate cut next year. Fox News’ Megan Henney contributed to this report.
