WASHINGTON, DC — Today, government watchdog Accountable.US urged the Fed not to use the latest encouraging economic news from the U.S. Labor Department, that 209,000 jobs were added to the U.S. economy in June, as an excuse to resume raising interest rates this month – especially as the manufacturing sector is showing serious signs of distress under the previous 10 rate hikes. Accountable.US’ calls to do no needless harm to the economy come on the heels of newly released Fed meeting minutes from June revealing “almost all Federal Reserve officials […] indicated further tightening is likely” despite their own economists’ projections that “the effects of the expected further tightening in bank credit conditions, amid already tight financial conditions, would lead to a mild recession starting later this year.”
A four-week reprieve from interest rate hikes is simply not enough time to heal the economic wounds left by the Fed’s misguided strategy,” said Jeremy Funk, Accountable.US spokesman.
“After raising interest rates an unprecedented 10 times in row, manufacturing jobs have diminished and fewer Americans are buying homes or new cars while the corporate greed epidemic driving inflation has remained largely unscathed. Even the Fed’s own economists admit continued rate hikes are a recipe for recession. Rather than jeopardize millions of American jobs with little to show for it, the Fed should continue to stand down and let Congress go after corporate profiteers driving up costs,” Funk continued.
Cracks In Economy Under High-Interest Rates: Marketplace.org: “Some economists have been warning about the prospect of a recession as the Fed continues to tap the brakes on the economy to fight inflation. And now we may finally have some hard evidence of a slowdown — in one particular sector: manufacturing. Today the Commerce Department reported that factory orders in May were up an underwhelming 3-tenths percent — and revised the previous month’s figure downward. Meanwhile, the Institute for Supply Management’s Purchasing Managers Index — a survey that measures manufacturing activity — fell again in June for an 8th straight month.”
Corporate Profiteering Unfazed By Higher Interest Rates: A recent report from Accountable.US found that many of the largest general consumer S&P 500 companies have admitted to benefiting from increased prices as their net profits increased year-over-year and rewarded shareholders with billions in new shareholder handouts.