Warren: ‘Very Worried’ Fed Will ‘Tip this Economy into a Recession’

Senator Elizabeth Warren (D-MA) said Sunday on CNN’s “State of the Union” that she is “very worried” that the Federal Reserve will “tip this economy into a recession.”

During a keynote speech Friday in Jackson Hole, Wyoming, Powell said, “While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation.”

Anchor Dana Bash said, “How likely do you think it is that a recession is coming if the interest rates continue to go up?”

Warren said, “I am very worried about this because of the causes of inflation, things like the fact that COVID is still shutting down parts of the economy around the world, that we still have supply chain kinks, that we still have a war going on in Ukraine that drives up the cost of energy, and that we still have these giant corporations that are engaging in price gouging. There is nothing in raising the interest rates, nothing in Jerome Powell’s toolbag that deals directly with those, and he has admitted as much in congressional hearings when I’ve asked him about it. Do you know what’s worse than high prices and a strong economy? It’s high prices and millions of people out of work.”

She added, “I’m very worried that the Fed is going to tip this economy into recession.”

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