Warren slams Jerome Powell for his interest rate comments: ‘I’m very concerned the Fed is going to push this economy into a recession’

“I am very concerned 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 our supply chain kinks, that we still have an ongoing war in Ukraine that drives up the cost of energy, and that We still have these giant corporations involved in price gouging,” Warren told CNN reporter Dana Bash on “State of the Union.”

“Nothing in the rate hike, nothing in Jerome Powell’s toolkit, who deals directly with those, and he admitted that in congressional hearings when I asked him about it,” the senator continued, adding, “Do you know what’s worse than a hike? Prices and a strong economy? It’s high prices and millions of people are out of work.”

“I am very concerned that the Fed is going to push this economy into a recession,” said Warren, who earlier this year opposed reappointing Powell to lead the Fed.

Fears of a US recession have been mounting for weeks, and Warren’s comments come just two days after Powell, The head of the country’s central bank, hinted at a possible recession During a keynote speech at the Federal Reserve’s annual Jackson Hole Economic Symposium. Powell told investors during his remarks that the Fed is laser-focused on inflation and will continue its historic pace of rate hikes for the foreseeable future.

“While high interest rates, slow growth, and weak labor market conditions will bring inflation down, they will also cause some pain to households and businesses,” he said.

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Like Warren, Wall Street also reacted negatively to the tone of Powell’s speech, as leading indicators of the potential for continued interest rates and the associated economic pain slipped — a word that Powell referred to twice in his brief speech, referring to the slower. Growth, high unemployment and financial stress will inevitably tighten policy on American homes and businesses.

Warren has Powell previously urged a cautious rate hike Avoiding a recession that could cost millions of jobs, including a Senate hearing in June, when she raised concerns about the impact of Fed rate hikes on families and the risk of a recession, and issued a similar warning to the one she gave Sunday.

“You know what’s worse than high inflation and low unemployment? It’s high inflation with a recession and millions of people out of work,” she told Powell. “I hope you think about that before you push this economy off the cliff.”

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