Senator Elizabeth Warren, D-MA said on Sunday’s CNN’s “State of the Union”, that she was “very concerned” about the Federal Reserve “tipping this economy into recession .”
In a speech Friday at Jackson Hole in Wyoming Powell stated that while higher interest rates and slower growth will help to reduce inflation, it will still cause some financial hardship for households and businesses. These are some of the unintended consequences of decreasing inflation .”
Anchor Dana Bash stated, “How likely do we think it is that there is a recession if interest rates keep going up ?”
Warren stated, “I’m very concerned about inflation because of the reasons for it, such as the fact that COVID still closes down some parts of the global economy, that there are still supply chain problems, that the war in Ukraine drives up energy costs, and that these huge corporations continue to engage in price gouging.” Jerome Powell has no tools that directly deal with these issues, so there is no need to raise interest rates. What is worse than strong economies and high prices? High prices, millions of unemployed
She said, “I am very concerned that the Fed will tip this economy into recession .”
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