The Progressive


A project of Common Dreams

For Immediate Release

Jeremy Funk,

Fed Hikes Interest Rates Despite Expert Warnings of More Economic Pain for Working People


Today, the Federal Open Markets Committee (FOMC), the Federal Reserve body which determines interest rates, announced a 75 basis points interest rate hike, the sixth increase in eight months, despite warnings from economic experts that doing so would cause a recession and cost as many as 3.2 million people their jobs by the end of 2023. A new analysis from government watchdog Accountable.US juxtaposes hawkish statements from FOMC leadership pushing for higher interest rates against warnings from a wide array of economic experts--including a United Nations body, two Nobel economists, former cabinet officials, and a former Federal Reserve economist-- who believe hiking interest rates too quickly could make inflation worse and further hurt working class Americans, all while doing little to address inflation drivers like corporate profiteering.

"A chorus of economic experts have warned hiking interest rates again is a recipe for millions of Americans receiving pink slips, yet the Fed has decided to triple down on what is not working," said Liz Zelnick, spokesperson for Accountable.US. "Throughout the pandemic, the Fed should have been acting as stewards of the fragile economic recovery but instead have prioritized demands from big banks, hedge funds and other Wall Street special interests at the great expense of average working families. If excessive interest rate hikes hasten the arrival of an otherwise avoidable recession, will the Fed take responsibility - or try to pass the buck as they keep making matters worse?"

Among Leading Economic Experts Warning of Consequences of Higher Interest Rates:

Accountable.US is a nonpartisan watchdog that exposes corruption in public life and holds government officials and corporate special interests accountable by bringing their influence and misconduct to light. In doing so, we make way for policies that advance the interests of all Americans, not just the rich and powerful.