Sen. Elizabeth Warren (D-MA) issued sharp criticism directed at the Federal Reserve over its decision to once again raise interest rates by 75 basis points.
“.@federalreserve’s Chair Powell just announced another extreme interest rate hike while forecasting higher unemployment.I’ve been warning that Chair Powell’s Fed would throw millions of Americans out of work — and I fear he’s already on the path to doing so,” Warren, a member of the Senate Committee on Finance, wrote on Twitter following Federal Reserve Chair Jerome Powell’s announcement regarding the benchmark interest rate hike.
Earlier Wednesday, Powell said he would boost the rate by 75 basis points for the third consecutive month as part of an effort to combat red-hot inflation, raising fears that the move could halt growth and cause additional issues for the U.S. economy.
“We have both the tools we need and the resolve that it will take to restore price stability on behalf of American families and businesses,” Powell stated. “Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy.”
“Higher interest rates, slower growth, and a softening labor market are all painful for the public that we serve. But they are not as painful as failing to restore price stability,” he added.
Powell hinted at the increase earlier this month, saying the Fed would continue to act “forthrightly, strongly” to combat inflation.
It is the fourth straight increase, following a half-point hike in May and a pair of 0.75-point hikes in June and July.
The UPI contributed to this report.