Following another increase in interest rates by the Federal Reserve to combat inflation, U.S. Senator Elizabeth Warren expressed her "very worry" about an impending recession.
Warren responded to Jerome Powell's comments on Friday that the Federal Reserve is committing to "forceful and quick action" against inflation that will "bring some pain" to Americans during an appearance on CNN's "State of the Union."
She was highly concerned that the Federal Reserve is again putting them at risk of a recession by hiking interest rates too quickly.
She added that the last thing they need is for it to choke off their economic recovery by raising rates too soon and too fast.
According to Warren, who spoke to anchor Dana Bash on Sunday, what Jerome Powell described as "some pain" refers to the loss of jobs and the closing of small firms as a result of rising borrowing costs and interest rates.
At the Fed's annual conference on Friday in Jackson Hole, Wyoming, Powell made hints about future interest rate increases, saying borrowing costs will rise and debt repayment will become more expensive.
The central bank raised interest rates for the second time this summer in July as it attempts to lower historically high inflation rates.
According to Warren, "nothing in Jerome Powell's tool bag interacts directly" with the numerous variables currently causing record-high inflation in the U.S., according to Bash.
The Massachusetts Democrat referenced the need for improvement. It has cited things like "the fact that COVID is still shutting down portions of the economy around the world.
It also stated that we still have supply chain kinks, that we still have the war in Ukraine that drives up the cost of energy, and that we still have these huge corporations engaging in price gouging."
Warren is not a fan of high prices, even if they're paired with a robust economy. His comments reflect a common misconception that the Federal Reserve is solely responsible for causing economic booms and busts.
Although they can certainly trigger these patterns, it would be wrong to lay all of our ills at their feet when things get tough in the country.
She even went on record to say that "high prices and millions out of jobs" will be worse for our country's well-being than simply having great inflation or slow growth rate."
She expressed concern that the Fed will cause this economy to enter a recession.
