The renomination by President Joe Biden of the Trump administration appointed Jerome H. Powell is causing Senator Elizabeth Warren (D-MA) more heartburn as she now rises to claim the “federal reserve will tip the economy into recession.”
The Senator 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 again the re-appointment of Powell. The tweet features a video of her questioning of Powell during that June 22, 2022 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.
Mohamed El-Erian, an advisor at Allianz, the German multinational financial services company that runs bond giant PIMCO, noted that while the message from Powell was clear and concise. He further noted it should have been done months ago.
Warren, however, continued that higher prices and millions of people out of work, is worse than high prices and a strong economy,