former labor secretary robert reich reiterated his criticism Low-wage workers are being hurt by the central bank’s inflation-fighting measures, he said about the idea of raising interest rates.
“Relying on the Fed to raise interest rates puts the burden of fighting inflation mostly on low-wage workers who are already hurt by rising prices. There’s no need to punish workers by raising rates to fuel unemployment. Stop raising rates,” Reich tweeted.
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comes in the wake of Reich’s observation federal Reserve Chair Jerome Powell’S speech But The Economic Club of Washington, DC Wherein he once again acknowledged that the disinflationary process has begun, but added that if the labor market remains strong and inflation remains high, the central bank will have to raise rates more than it costs.
US stock markets were volatile on Tuesday as investors and traders hung on every word from the Fed chairman. However, the major indices ended the session in the green. SPDR S&P 500 ETF Trust Spy while 1.29% Invesco QQQ Trust Series 1 QQQ increased by 2.07%.
Powell’s comments came in the wake of a strong employment report released last week. Labour Department The US economy added 517,000 jobs in January, far exceeding economists’ estimates of 187,000 new jobs.
minneapolis fed president Neel Kashkari Said the Fed hasn’t made enough progress and may need to raise the target rate from the current target range of 4.5% to 4.75% to beat inflation.
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