WASHINGTON D.C. — The U.S. Labor Department’s latest Consumer Price Index (CPI) report shows several major industries, especially the housing sector, continued to raise prices despite the Federal Reserve’s repeated interest rate hikes. While overall inflation cooled to just .1 percent in March, prices across the economy are up 5 percent over the last year. While the Fed has raised interest rates to a 40 year-high ostensibly to curb inflation, the policy has done far more harm than good — creating alarming cracks in the economy that pose a serious risk of a recession.
It’s time for the Fed to face the reality that many industries like big landlords simply will not stop profiteering no matter how many times they raise interest rates. The Fed has little to show for their economic gamble yet they insist on doubling down, even as economists admit higher interest rates will cause a recession and cost millions of Americans their jobs. The Fed should cut its losses and let Congress take far more effective measures to deal with the corporate greed epidemic.”
Liz Zelnick, Director of Accountable.US’ Economic Security & Corporate Power program.
The Federal Reserve raised rates for the 9th time last month despite their own projections that higher rates will drive up the unemployment rate to 4.6 percent – costing at least 2 million Americans their jobs.
Accountable.US has documented how industries including big pharma and major meatpackers have continued to raise prices without justification as they have reported massive increases in profits, net income, and billions of dollars in new handouts to wealthy investors.