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September 22, 2022

Progressives Warn Fed's Interest Rate Hikes Will "Throw Millions of Americans Out of Work"
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The Federal Reserve has voted to raise U.S. interest rates for the third
consecutive time, bringing the cost of borrowing money from the Treasury
above 3%. Fed Chair Jerome Powell acknowledged Wednesday that the move
could lead the U.S. into a recession, but said the need to battle
inflation outpaced the prospect of an economic slowdown. Powell said the
U.S. housing market is headed for a "correction," and said U.S.
unemployment remains too low, with demand for labor outpacing supply.

Jerome Powell: "The labor market continues to be out of balance, with
demand for workers substantially exceeding the supply of available
workers."

The Fed's interest rate hikes have prompted fierce criticism from
progressives and union leaders. Massachusetts Democratic Senator
Elizabeth Warren tweeted, "I've been warning that Chair Powell's Fed
would throw millions of Americans out of work - and I fear he's already
on the path to doing so."


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