Sen. Elizabeth Warren said she is “very concerned that the Fed is going to tip this economy into recession.”[ads1];
Speaking on CNN’s “State of the Union,” Warren expressed concern about the Federal Reserve’s strategy for raising interest rates.
The senator said Fed Chairman Jerome Powell is failing to address the causes of inflation directly.
Sen. Elizabeth Warren said she is “very concerned” about a looming recession after the Federal Reserve once again raised interest rates in an effort to curb inflation.
Speaking on CNN’s “State of the Union,” Warren responded to Federal Reserve Chairman Jerome Powell’s comments Friday that the central bank is promising “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 calls ‘a little pain’ means putting people out of work, closing small businesses, because the cost of money goes up, because interest rates go up,” Warren told the host. Dana Bash on Sunday.
Powell hinted that more rate hikes will come at the Fed’s annual conference in Jackson Hole, Wyoming, on Friday, indicating that borrowing costs will continue to rise and debt will become increasingly expensive to pay off. In July, the Fed raised interest rates for the second time this summer, as the central bank appears to be curbing record high inflation rates.
Warren told Bash that she believes there is “nothing in Jerome Powell’s toolbox that deals directly” with the broad factors currently contributing to record high inflation in the United States.
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 supply chains, that we still have war going on in Ukraine that is driving up the cost of energy, and that we still have these giant companies engaged 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 tip this economy into recession,” Warren said.
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