Senator Elizabeth Warren (file photo) Senator Warren worries about Fed plans to raise interest rates
Jerome Powell warned on Friday that the anti-inflationary measure is expected to slow economic growth and possibly increase unemployment
Democratic Senator Elizabeth Warren said on Sunday, that she is concerned about the plans of the Federal Reserve to raise interest rates, which, according to her, could plunge the country's economy into recession and lead to job losses.
“You know what's worse than high prices and a strong economy? These are high prices and millions of people out of work. I'm very concerned that the Fed is going to spur the economy into a recession,” Warren told CNN on Sunday.
Fed chief Jerome Powell warned on Friday that Americans are in for a painful period of slow economic growth and possibly , rising unemployment as the Federal Reserve raises interest rates to fight high inflation.
Powell said the Fed will raise rates as much as necessary and hold them there “for some time” to bring down inflation, which is more than three times the Fed's target of 2%.
“While higher interest rates, slower growth and easing labor market conditions will bring inflation down, they will also bring some pain to households and businesses. This is the unfortunate cost of reducing inflation. But failure to restore price stability will mean much more pain,” the Fed chief said.
rising due to higher interest rates,” said Warren, whose views on the economy are often influential among progressive Democrats.
Warren said inflation was high in part because of supply issues, the COVID-19 pandemic 19 and the war unleashed by Russia in Ukraine.
“There is nothing in raising interest rates that can directly solve these problems, and he admitted this in a congressional hearing,” Warren recalled.