It’s about time the most progressive, far-left lunatics begin to admit what’s really going on with the economy. After all, they are of the political movement that ostensibly fights for America’s working-class, right?
Sen. Elizabeth Warren said Sunday that she has grown “very worried” that the Federal Reserve’s recent interest rate hikes and possible future increases will “tip this economy into recession.”
Warren made the comments while appearing on CNN when asked about a contentious Senate hearing in which Fed Chairman Jerome Powell told lawmakers he would order drastic efforts to correct Bidenflation — including artificially setting prices by further increasing the interest rate.
“I am very worried about this because of the causes of inflation,” Warren said.
Elizabeth Warren on Jerome Powell signaling interest rates will continue to go up: "What he calls 'some pain' means putting people out of work, shutting down small businesses, because the cost of money goes up, because the interest rates go up … I am very worried about this." pic.twitter.com/yQhzksyDA9
— Aaron Rupar (@atrupar) August 28, 2022
In Powell’s Friday speech at the central bank’s annual symposium, he said the Fed would continue to raise interest rates “forcefully” in order to return price stability to the economy.
“Reducing inflation is likely to require a sustained period of below-trend growth,” Powell said. “Moreover, there will very likely be some softening of labor market conditions.”
“These are the unfortunate costs of reducing inflation,” he added.
How does any lawmaker (or regular American) consider Powell’s admission acceptable? Essentially, America’s top banker is admitting to jiggling the knobs of inflation and artificially setting prices in an effort to save Biden’s ass after spending America into oblivion. Meanwhile, average Americans are the only people who suffer! Everyone else benefits from an interest rate hike.
The United States has had two quarters of negative GDP growth — a pattern that is typically associated with a recession. The negative GDP growth is a sign that the economy has slowed, something to which the Fed’s aggressive rate-hiking cycle has contributed.
After an unprecedented two years of interest rates at near-zero levels, the Fed finally conducted its first rate hike in March, raising rates by the typical quarter of a percentage point. The Fed is going on to conduct another 75-basis-point hike in July.
Inflation is now running at 8.5% in the 12 months ending in July, according to the consumer price index. That is down from a June peak of above 9%.
In other words, when you boil all of this down, it’s economic warfare against regular American citizens.
Author: Vasily Ivanov