Warren Slams Jerome Powell Over Interest Rate Comments I M Very Concerned That The Fed Is Going To Lead This Economy Into A Recession

“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,” the senator continued, adding: “You know what’s worse than high prices and a strong economy? It’s the high prices and millions of people out of work.” “I’m very concerned that the Fed is going to lead this economy into a recession,” said Warren, who earlier this year opposed Powell’s reappointment to head the Fed. Fears of a US recession have been rising for weeks and Warren’s comments come just two days after Powell, the head of the nation’s central bank, hinted at a possible recession during a keynote speech at the Federal Reserve’s annual Jackson Hole Economic Symposium . Powell told investors during his remarks that the Fed was laser-focused on inflation and would continue its historic pace of rate hikes for the foreseeable future. “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.
Like Warren, Wall Street reacted negatively to the tone of Powell’s speech, with major indexes falling on the prospect of a prolonged period of higher interest rates and the associated economic pain — a word Powell invoked twice in the brief speech of, reporting more slowly. growth, higher unemployment and economic pressure that will inevitably bring tighter policy to American homes and businesses. Warren previously urged Powell to proceed cautiously with rate hikes and avoid triggering a recession that would cost millions of jobs, including at a Senate hearing in June, when she expressed concern about the impact of Fed rate hikes on families and the risk recession and issued a warning similar to the one he issued on Sunday.
“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,” he told Powell. “I hope you think about that before you drive this economy off the cliff.” CNN’s Martha C. White and Matt Egan contributed to this report.