The Federal Reserve was blamed for the skyrocketing inflation in the United States.
On Sunday, Democratic Sen. Elizabeth Warren of Massachusetts released a statement, blasting Federal Reserve Chairman Jerome Powell and alleged that he could “tip this economy into recession.”
“I am very worried about this because the causes of inflation — things like the fact that Covid is still shutting down parts of the economy around the world, 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 that are engaging in price gouging,” Warren said in a statement.
“There is nothing in raising the interest rates, nothing in Jerome Powell’s tool bag, that deals directly with those, and he has admitted as much in congressional hearings when I’ve asked him about it. Do you know what’s worse than high prices and a strong economy? It’s high prices and millions of people out of work,” she added.
#Economy Senator Warren worries that Fed will tip U.S. economy into recession: U.S. Senator Elizabeth Warren (D-MA) gestures as Federal Reserve Chair Jerome Powell testifies before a Senate Banking, Housing, and Urban Affairs Committee hearing on the… https://t.co/IImac7cOXI
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Moreover, the Democrat also made another claim and blamed the FED’s decision to increase the interest rates and argued that is highly likely to push the country into recession.
Warren also blasted FED for not considering multiple factors responsible for the rising inflation in the United States including the ongoing Ukraine-Russian crisis and COVID-enforced lockdowns.
She also added that Fed’s actions are burdening the economy further, which will result in mass unemployment.
Warren’s remarks came after Powell’s claims sparked controversy after he revealed that reducing inflation “requires using our tools forcefully to bring demand and supply into better balance.”
“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell said during the Federal Reserve’s annual Jackson Hole Economic Symposium on Friday morning.
This wasn’t the first time that Warren blasted Powell. Previously, the Democrat Powell a “dangerous man,” and alleged that he is pushing the American banking sector to the brink of seizure.
Warren also claimed that the Fed’s actions would not help with the inflation at all, while unemployment will keep on surging, leaving the people in a more miserable situation.
