Washington D.C. – As Federal Reserve Chairman Jerome Powell testifies before Congress this week, the economic toll from the Fed’s aggressive interest rate hikes continues to grow. As a result of higher interest rates, wage growth is slowing, and factory demand in the U.S. manufacturing sector is in decline. The news follows the Congressional Budget Office’s recent forecast that economic growth will grind to a “halt” this year “in response to the sharp increase in interest rates that occurred in 2022.” The big question the Fed Chair should answer this week: How many layoffs is the Federal Reserve willing to accept before ceasing further rate hikes, if there’s any limit at all?
Every time the Fed doubles down on its job-killing interest rate hikes, the closer the economy is pushed towards a recession.
The more the Fed caters to big banks, hedge funds and other Wall Street special interests, the more average working families stand to lose. The Fed’s one-track-minded policy has done little to contain the corporate greed epidemic that’s really driving up prices – but much to threaten manufacturing jobs that are the lifeblood of the economy. The Fed’s choice is clear: do more harm than good for the economy or get out of the way of far more effective Congressional efforts to crack down on corporate profiteering.”
Liz Zelnick, Accountable.US’ Director of Economic Security and Corporate Power.
Will the Fed Finally Listen? Accountable.US released an updated roundup of warnings from leading economists, labor leaders, and key lawmakers that further interest rate hikes could cost millions of jobs or even bring about a recession.