Senator Warren ‘Very Concerned’ About Federal Reserve Rate Hike, Pushing US Economy Into Recession – Economics Bitcoin News

Senator Warren ‘Very Concerned’ About Federal Reserve Rate Hike, Pushing US Economy Into Recession – Economics Bitcoin News

US Senator Elizabeth Warren says she is “very concerned” that the Federal Reserve will push the economy into recession. “There is nothing in raising interest rates, nothing in Jerome Powell’s toolbox that directly addresses” the causes of inflation, she explained.

Senator Elizabeth Warren on inflation and the Fed’s rate hike

U.S. Sen. Elizabeth Warren (D-Mass.) discussed inflation and the Federal Reserve’s interest rate hike during an appearance on CNN’s State of the Union show Sunday.

She started by commenting speech by Federal Reserve Chairman Jerome Powell in Jackson Hole on Friday. “While higher interest rates, slower growth and softer labor market conditions will reduce inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But failure to restore price stability would mean far more pain,” Powell said.

“I want to translate what Jerome Powell just said,” the Massachusetts senator said. “What he called ‘some pain’ means putting people out of work, shutting down small businesses because the price of money is going up, because interest rates are going up.

Asked if she believed it was a mistake for the Federal Reserve to keep raising interest rates, Warren emphasized:

I am very concerned about this.

She went on to list “the causes of inflation — things like the fact that Covid is still shutting down parts of the economy around the world, we still have disruptions in the supply chain, we still have the war in Ukraine pushing up energy prices, and we still have these giant corporations that engage in price gouging.”

Senator Warren emphasized:

There’s nothing about raising interest rates, nothing in Jerome Powell’s toolbox that directly addresses that, and he admitted that in congressional hearings when I asked him about it.

She continued: “You know what’s worse than high prices and a strong economy? These are high prices and millions of people out of work. I am very concerned that the Fed is going to put this economy into recession.”

A survey released last week found that 72% of economists polled by the National Business Economics Association expect the U.S. economy to be in recession by the middle of next year. Nearly one in five (19%) economists surveyed said the economy is already in recession, as determined by the National Bureau of Economic Research (NBER).

A different survey by Stifel Financial found that 97% of corporate executivesbusiness owners and private investors in the US survey believe that the US economy is either already in recession (18%) or will face one in the next 18 months (79%).

Some people believe that inflation has peaked, including Tesla CEO Elon Musk. Meanwhile, JPMorgan CEO Jamie Dimon said there is a chance for “something worse” than the recession is coming.

What do you think of US Senator Elizabeth Warren’s comments? Let us know in the comments section below.

Senator Warren ‘Very Concerned’ About Federal Reserve Rate Hike, Pushing US Economy Into Recession – Economics Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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