Senator Elizabeth Warren said she was “very concerned that the Fed is going to lead this economy into a recession.” Speaking on CNN’s “State of the Union,” Warren expressed concern about the Federal Reserve’s strategy to raise interest rates. The senator said Fed Chairman Jerome Powell is failing to directly address the causes of inflation.
Senator Elizabeth Warren said she was “very worried” about an impending recession after the US Federal Reserve raised interest rates again in an attempt to curb inflation. Speaking on CNN’s “State of the Union,” Warren responded to Federal Reserve Chairman Jerome Powell’s remarks Friday that the central bank is committed to “strong and swift action” against inflation that will “bring some pain” to Americans. . “I just want to translate what Jerome Powell just said. What he’s calling ‘some pain’ is putting people out of work, small businesses closing, because the cost of money is going up, because interest rates are going up,” Warren told the presenter. Dana Bash on Sunday. Powell hinted at more rate hikes to come at the Fed’s annual meeting in Jackson Hole, Wyoming, on Friday, suggesting borrowing costs will continue to rise and debt will become increasingly expensive to repay. In July, the Fed raised interest rates for the second time this summer as the central bank tries to moderate record levels of inflation. Warren told Bash that she believes there is “nothing in Jerome Powell’s tool bag that is directly relevant” to the big factors currently contributing to record US inflation. The Massachusetts Democrat specifically cited the need to improve issues, including the fact that COVID is still shutting down parts of the economy around the world, that we still have disruptions in the supply chain, that we still have a war going on in Ukraine that is increasing energy costs, and that we still have these giant companies that engage in price gouging.” “You know what’s worse than high prices and a strong economy? High prices and millions of people out of work. I’m very concerned that the Fed is going to drive this economy into a recession,” Warren said. Read the original article on Business Insider
