The Fed remains on the defensive over its relentless, job-killing interest rate hikes as the U.S. Labor Department’s March jobs report shows the labor market remains strong but is slowing artificially. 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. The Fed has insisted interest rate hikes are necessary to combat inflation, yet the latest Consumer Price Index (CPI) showed corporate greed is alive and well with every major industry sector raising prices on consumers last month. Government watchdog Accountable.US called today’s jobs report the latest sign the Fed’s strategy is doing far more harm than good for the economy and working Americans.
Cracks Forming In Economy Under Sky High Interest Rates: The DOL report follows signs that private sector hiring and annual pay has fallen over the last month. Bloomberg reported that “the odds of a recession are growing,” according to its survey of economists that found the probability of a downturn in the next year is 65%, pointing to the Federal Reserve’s continued interest rate hikes. And Reuters reported a new Institute for Supply Management (ISM) industry survey showing that U.S. manufacturing activity “slumped in March to the lowest level in nearly three years.”
The Fed’s interest rate hiking spree is killing jobs and welcoming a recession – and they know it. Major cracks are forming in the economy under the pressure of punitively high interest rates. It makes no sense for the Fed to wait until the economic dam bursts before cutting their losses on a failed strategy. Needlessly pushing 2 million Americans into the unemployment line is not worth a policy that has done little to squash the corporate greed epidemic. The time is now for the Fed to back off and let Congress and the administration take far more effective steps to deal with corporate profiteering that’s keeping prices at unreasonable and unjustified levels.”