The Bureau of Labor Statistics’ newly released Producer Price Index report shows inflation is slowing down – echoing signs from the U.S. Labor Department last week. Government watchdog Accountable.US called the report more reason the Fed should ease their overly aggressive policy of raising interest rates, which leading economic experts warn could threaten millions of jobs while doing nothing to address the real driver of out-of-control prices: corporate greed.
A recent analysis from Accountable.US spotlighted a growing chorus of warnings from a wide array of economic experts, labor leaders, and lawmakers who conclude hiking interest rates too quickly could make inflation worse and further hurt working class Americans, all while doing little to address inflation drivers like corporate profiteering. Earlier this month, the Federal Open Markets Committee (FOMC), the Federal Reserve body which determines interest rates, announced a 75 basis points interest rate hike, the sixth increase in eight months, over expert warnings that doing so would cause a recession and cost as many as 3.2 million people their jobs by the end of 2023.
As more signs point to slowing inflation, the Fed has no reason to keep its foot on the gas with more aggressive, job-killing interest rate hikes. It’s time for policy-makers to turn their full attention to the real culprit behind out-of-control costs: corporate greed. Highly profitable corporations have kept raising prices on working families without justification while rewarding wealthy investors with billions in new handouts. Instead, the Fed has been focused on playing a dangerous game of chicken with the economy with sky-high interest rates that experts warn could cost millions of jobs. Throughout the pandemic, the Fed has catered to demands from big banks, hedge funds and other Wall Street special interests at the expense of average working families. If excessive interest rate hikes speed up the arrival of an otherwise avoidable recession, will the Fed take responsibility – or try to pass the buck as they keep making matters worse?”