September 28, 2022

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Elizabeth Warren says she is "deeply concerned" that the Fed is driving the US into recession by raising interest rates

Elizabeth Warren says she is “deeply concerned” that the Fed is driving the US into recession by raising interest rates

Senator Elizabeth Warren.Lou Rocco/ABC via Getty Images

  • Senator Elizabeth Warren said she was “very concerned that the Fed is going to push this economy into recession.”

  • Speaking on CNN’s State of the Union, Warren expressed concern about the Federal Reserve’s strategy to raise interest rates.

  • The senator said Federal Reserve Chairman Jerome Powell is failing to directly address the causes of inflation.

Senator Elizabeth Warren said she was “extremely concerned” about a looming recession after the Federal Reserve Once again interest rates have gone up In an effort to reduce inflation.

Warren responded as a speaker on CNN’s ‘State of the Union’ Federal Reserve Chairman Jerome Powell’s statement On Friday, the central bank vowed to “take strong and swift action” against inflation that would “bring some pain” to Americans.

“I just want to translate what Jerome Powell just said. What he calls ‘some pain’ means putting people out of work, closing down small businesses, because the cost of money is going up, because interest rates are going up,” Warren told the host. Dana bash on Sunday.

Powell hinted at further rate increases at the Federal Reserve’s annual conference in Jackson Hole, Wyoming, on Friday, noting that borrowing costs will continue to rise and debt repayment will be increasingly costly. In July, the Fed raised interest rates to The second time this summerThe central bank looks to ease record high inflation rates.

She told Warren Bash that she believes there is “nothing in Jerome Powell’s toolbox that deals directly” with the broad-based factors currently contributing to high inflation in the United States.

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The Massachusetts Democrat specifically noted the need to improve issues including “the fact that COVID is still shutting down parts of the economy around the world, that we still have kinks in the supply chain, we still have an ongoing war in Ukraine which leads To increase the cost of energy, and that we still have these giant corporations that engage in price gouging.”

“Do you know what’s worse than high prices and a strong economy? High prices and millions out of work. I’m very worried that the Fed is going to push this economy into recession,” Warren said.

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