Elizabeth Warren worries Federal Reserve ‘will tip our economy into RECESSION’ after chair Janet Yellen’s remarks. Americans can expect ‘suffering’ as a result of Jerome Powell’s efforts to curb inflation, the Massachusetts Democrat told CNN’s Dana Bash. ‘I’m very concerned that the Fed will tip this economy into recession,’ he added.
“What is worse than high prices and a robust economy?” It’s exorbitant pricing and millions of unemployed individuals.
Powell stated on Friday that interest rates will continue to rise ‘rapidly’ for an extended period of time as the Fed attempted to rein in persistently high inflation.
Powell stated, “Our obligation to maintain price stability is absolute,” adding that restoring price stability will take “some time.”
Sen. Elizabeth Warren stated on Sunday that she is’very concerned’ about an imminent recession after Federal Reserve Chair Jerome Powell signaled in aggressive statements on Friday that interest rates may rise even further.
The Massachusetts Democrat told CNN’s Dana Bash, ‘I am quite concerned that the Fed will tip our economy into recession.’
‘The causes of inflation, such as the fact that COVID is still shutting down portions of the global economy, that we still have supply chain kinks, that we still have a war going on in Ukraine that drives up the cost of energy, and that we still have these giant corporations engaging in price gouging, there is nothing in raising interest rates, nothing in Jerome Powell’s tool bag that directly addresses these,’ Warren added.
“What is worse than high prices and a robust economy?” It is exorbitant pricing and millions of unemployed people.’
The Massachusetts Democrat told CNN’s Dana Bash, “I’m quite concerned that the Fed will tip this economy into recession.”
Jerome Powell stated during a symposium in Jackson Hole, Wyoming, that interest rates will continue to rise ‘rapidly’ for an extended period of time as the Federal Reserve worked to reign in persistently high inflation.
Powell stated during a conference in Jackson Hole, Wyoming, that interest rates will continue to rise ‘rapidly’ for an extended period of time as the Federal Reserve worked to reign in persistently high inflation.
Powell stated, “Our responsibility to deliver price stability is absolute,” adding that restoring price stability will take “some time.”
Despite a quick series of big interest rate increases that have lifted the Fed’s target rate from from zero to 2.5 percent, inflation stayed around a 40-year high in July at 8.5%.
The July rate was a small decrease from June’s 9.1 percent high consumer price index.
But ‘a single month’s improvement falls well short of what the Committee will need to observe before we are sure that inflation is declining,’ Powell said, referring to the Federal Open Market Committee, which sets monetary policy for the central bank.
Americans would suffer the effects of price control, Powell warned.
In highly anticipated remarks at the Jackson Hole, Wyoming symposium hosted by the Kansas Federal Reserve, he stated, “While higher interest rates, slower growth, and tougher labor market conditions may reduce inflation, they will also cause some pain for consumers and companies.”
The Federal Reserve boosted its benchmark interest rate by a substantial 75 basis points for the second consecutive month in December.
These are the regrettable costs of lowering inflation. However, failure to restore price stability would result in much greater suffering.
Powell did not indicate what the Fed might do at its forthcoming policy meeting on September 20-21. Officials are anticipated to approve either a 50- or 75-basis-point rate hike.
The Fed chair pledged to battle ‘vigorously’ against price hikes until inflation returned to the target level of 2%. In June and July, the favored Fed inflation indicator, the personal consumption expenditure price index, was at 6.8 percent.
The price index decreased by 0.1% on a monthly basis, a larger reduction than economists had anticipated.