(ConservativeInsider.org) – As the federal government bails out banks and inflation continues to remain at historic highs, many Americans are nervous about a looming recession. To try and get inflation under control without causing the economy to crash, the Federal Reserve and its chairman, Jerome Powell, raised interest rates another quarter point on Wednesday, March 22. However, Senator Elizabeth Warren (D-MA) is very unhappy with this move and is making sure Americans know about it.
During a discussion with CNN’s Jake Tapper on Wednesday, Warren said she believes the three things causing inflation are the war in Ukraine, price gouging by major corporations, and supply chain issues. She then said Powell is using the only tool he has, raising interest rates, to try and push inflation down, but she believes that move is incapable of affecting any of those three factors.
The Massachusetts lawmaker also accused Powell of trying to increase unemployment to cool off the economy. She went on to say that Powell is doing “a really terrible job” and is “risking putting our economy into a recession.”
Warren then told Tapper that five years ago, she predicted that the loosening of regulations around big banks would lead to their higher risk-taking and eventual collapse. Then, she emphasized that whenever unemployment goes up by one whole point within twelve months, it ends in a recession, and two million people lose their jobs. With this in mind, she called Powell “a dangerous man to have in this job.”
Warren is clearly calling for the removal of Chairman Powell and has joined six other senators in calling for the Fed to increase regulation of banks in America to prevent more collapses. Regulating the US economy and banks is not only in the hands of the Federal Reserve, though. Biden administration policies, as well as many other financial agencies, all play a part in the ebb and flow of money in the US.
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