Federal Reserve Faces Scrutiny From Senator

Sen. Elizabeth Warren (D-MA) took aim at the Federal Reserve recently, warning that the institution would tip the country deep into financial crisis if it continued enacting its current policy prescriptions.

Warren took to the national news circuit to take issue with Powell’s statement that while some businesses and households may experience some pains, higher interest rates and slower growth will result in bringing down inflation.

In a tweet, Warren stated “interest rate hikes won’t bring down gas and food prices for families. But they could throw millions of out of their jobs, trigger a recession, and drive our economy off a cliff.”

Warren was the only member of the Committee of Banking, Housing and Urban Affairs to vote against the reappointment of Powell. The tweet features a video of her questioning Powell during that June 22 hearing.

Her concerns seem to involve “throwing workers out of work,” because small businesses will be harmed further and perhaps to the point of no return.

Warren appeared on CNN State of the Union to reiterate her worry of the effect higher interest rates will have on the working class. She insisted the root of our inflation is due to the Russian-Ukraine war, supply chain snags and lingering COVID19 issues. You can see a YouTube highlight of that interview here.

But top economists noted that Powell finally sent the right message. Powell released his intent during a recent speech in Jackson Hole, Wyoming. It was noted by top economists that Powell was very succinct in his eight-minute address mentioning “inflation” 45 times.

Warren’s stated belief is that higher prices are acceptable if the economy is strong. If she wants a stronger economy, she should start working to get rid of the president who seems to be doing all he can to tank it.