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roosevelt institute
Economists Warn Trump Attack on Fed Will Further Jack Prices for Working Families
"Confidence that the Fed will respond wisely to future periods of macroeconomic stress... will evaporate," warned one economist.
Aug 29, 2025
Economists are warning that US President Donald Trump's efforts to meddle with the Federal Reserve are going to wind up raising prices even further on working families.
Michael Madowitz, principal economist at the Roosevelt Institute, said on Wednesday that the president's efforts to strong-arm the US central bank into lowering interest rates by firing Federal Reserve Gov. Lisa Cook would backfire by accelerating inflation.
"The administration's efforts to politicize interest rates—an authoritarian tactic—will ultimately hurt American families by driving up costs," he said. "That helps explain why Fed independence has helped keep inflation under 3%, while, after years of political interference in their central bank, Turkey's inflation rate is over 33%."
Heidi Shierholz, the president of the Economic Policy Institute, said that the president's move to fire Cook "radically undermines what Trump says his own goal is: lowering U.S. interest rates to spur faster economic growth."
She then gave a detailed explanation for why Trump imposing his will on the Federal Reserve would likely bring economic pain.
"Presidential capture of the Fed would signal to decision-makers throughout the economy that interest rates will no longer be set on the basis of sound data or economic conditions—but instead on the whims of the president," she argued. "Confidence that the Fed will respond wisely to future periods of macroeconomic stress—either excess inflation or unemployment—will evaporate."
This lack of confidence, she continued, would manifest in investors in US Treasury bonds demanding higher premiums due to the higher risks they will feel they are taking when buying US debt, which would only further drive up the nation's borrowing costs.
"These higher long-term rates will ripple through the economy—making mortgages, auto loans, and credit card payments higher for working people—and require that rates be held higher for longer to tamp down any future outbreak of inflation," she said. "In the first hours after Trump's announcement, all of these worries seemed to be coming to pass."
Economist Paul Krugman, a former columnist for The New York Times, wrote on his personal Substack page Thursday that Trump's moves to take control of the Federal Reserve were "shocking and terrifying."
"Trump's campaign to take over monetary policy has shifted from a public pressure to personal intimidation of Fed officials: the attack on Cook signals that Trump and his people will try to ruin the life of anyone who stands in his way," he argued. "There is now a substantial chance that the Fed's independence, its ability to manage the nation's monetary policy on an objective, technocratic basis rather than as an instrument of the president's political interests and personal whims, will soon be gone."
The economists' warnings come as economic data released on Friday revealed that core inflation rose to 2.9% in August, which is the highest annual rate recorded since this past February. Earlier this month, the Producer Price Index, which is considered a leading indicator of future inflation, came in at 3.3%, which was significantly higher than economists' consensus estimate of 2.5%.
Data aggregated by polling analyst G. Elliott Morris shows that inflation is far and away Trump's biggest vulnerability, as American voters give him a net approval of -23% on that issue.
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New Report Sheds Light on the Pitfalls of AI-Powered 'Gig Nursing'
"These apps are a symptom of broken healthcare infrastructure that is now victim to corporate takeovers. Failing to act on both fronts poses risks to our healthcare system and the workers who power it," wrote one of the researchers.
Dec 17, 2024
While gig work is fairly common in a number of sectors in the American economy, a brief released Tuesday by the progressive-leaning think tank the Roosevelt Institute details how the gig model now has its tentacles in the healthcare industry, and argues it is creating new hazards for workers and patients.
The brief, authored by Groundwork Collaborative fellow Katie Wells and King's College London lecturer Funda Ustek Spilda, sounds the alarm over "on-demand nursing firms" such as CareRev, Clipboard Health, ShiftKey, ShiftMed, and others which have gained traction by promising hospitals more control and nurses and nursing assistants more flexibility.
Practically speaking, these "new Uber-style apps use algorithmic scheduling, staffing, and management technologies—software often touted by companies as cutting-edge 'AI,' or artificial intelligence—to connect understaffed medical facilities with nearby nurses and nursing assistants looking for work," according to the brief.
The authors, whose research was largely based on interviews with 29 gig nurses, argued that these apps "encourage nurses to work for less pay," do not offer nurses clarity when it comes to scheduling and amount or type of work, are not sufficiently concerned with worker safety, and "can threaten patient well-being by placing nurses in unfamiliar clinical environments with no onboarding or facility training."
These platforms are also using the same tactics as the ride-hailing service Uber when it comes to lobbying state legislatures in order to shield themselves from labor regulations, according to the authors, who noted that larger hospital systems in the country have included gig nurses in their operations since 2016.
The researchers argued that while the rates on a platform like ShiftKey can be higher for nurses and nurses assistants, nursing on-demand platforms can create a race to the bottom for wages: "The nurses and nursing assistants who use these apps must pay fees to bid on shifts, and they win those bids by offering to work for lower hourly rates than their fellow workers."
When the nursing on-demand firms classify the workers as self-employed, nurses and nursing assistants are also exposed to higher risk because they are "excluded from the protections of local, state, and federal law on minimum wage, overtime pay, workers' compensation, retirement benefits, employment-based health insurance, and paid sick days."
Workers are also rated based on facility feedback and determinations made by the algorithm, and can be penalized if they cancel a shift because they are sick or have a conflict, per the report.
"In at least one case, a nursing assistant went into work at a hospital while sick with Covid-19 because she could not figure out how to cancel a shift without lowering her rating," according to the authors.
By way of background, the authors of the brief also argue that the often-invoked "nursing shortage" is actually misleading term. In fact, there is no shortage of available nurses and nursing assistants, but rather a "growing number of nurses and nursing assistants who refuse to accept chronically understaffed, underpaid, unsafe, and high-stress workplaces," according to the brief, which cites outside research.
In fact, many of the workers interviewed said they would continue working for nursing on demand services because broadly speaking they like the work. According to the brief, interviewees said "over and over again how important flexible schedules are to their lives, especially their own caregiving, be it for children, spouses, or elders"—though the authors of the study wrote that this does not mean the concerns expressed by the workers are not worth paying attention to.
The rise of gig nursing is taking place on the backdrop of increasing corporate ownership over the healthcare industry writ large, including the rise of private equity ownership of medical facilities and medical staffing agencies.
"Policymakers need to be proactive and step in to regulate these platforms and provide proper labor protections for all nurses, gig and non-gig alike," said Wells in a Tuesday statement. "But these apps are a symptom of broken healthcare infrastructure that is now victim to corporate takeovers. Failing to act on both fronts poses risks to our healthcare system and the workers who power it."
Wells also told The Guardian that the gig companies don't release data and the industry is unregulated, meaning the true extent to which the U.S. healthcare system is leaning on gig nurses is unknown—but she said it is clearly a growing trend.
These on-demand nursing apps can also have a negative impact on patients, according to sources the authors spoke with. One nurse recounted that "there have been times when I've been unable to access patient records or find supply closets."
"Other workers report that the lack of management and resources can result in major safety lapses for patients, such as gig nurses not being able to get updated information on patient medications or instructions about whether patients need help with feeding," the authors wrote.
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California's $20 Fast Food Worker Minimum Wage Kicks In
"Fast food companies can afford to pay $20/hour without raising prices or cutting hours," said the California Fast Food Workers Union. "Doing either is a choice. Don't let them tell you otherwise."
Apr 01, 2024
A new California law raising the minimum wage for most fast food workers from $16 to $20 an hour took effect Monday, a move cheered by labor advocates who dismissed—and debunked—claims by an industry reaping record profits that the pay hike would force restaurant chains to raise prices and cut jobs.
The law applies to restaurants at national fast food chains with at least 60 locations and that have limited or no table service. Restaurants inside supermarkets and establishments that bake and sell bread are exempt. Twenty dollars is just a starting point, as a state law also established a Fast Food Council that can raise wages by up to 3.5% annually through 2029.
"The vast majority of fast food locations in California operate under the most profitable brands in the world," Joseph Bryant, executive vice president of the Service Employees International Union, said in a statement. "Those corporations need to pay their fair share and provide their operators with the resources they need to pay their workers a living wage without cutting jobs or passing the cost to consumers."
As the California Fast Food Workers Union noted:
- From 2015 to 2023, California raised the minimum wage by 72%, from $9 an hour to $15.50 an hour;
- While the minimum wage was rising, fast food restaurants in California added 142,000 jobs; and
- The minimum wage has increased every year in California since 2015, and so has the number of fast food jobs in California, except for 2020, when the Covid pandemic hit.
California Fast Food Worker Union also pointed out that "numerous academic studies confirm: When states and cities pass big minimum wage increases, employers either add jobs or there is no or minimal effect on employment."
BREAKING: Today hundreds of fast food workers from across California are in LA to officially launch the California Fast Food Workers Union
We've won a Fast Food Council
We've won $20/hr
Now we're doing whatever it takes to win annual raises, just cause, and more#UnionsForAll pic.twitter.com/pykRKZF0PV
— California Fast Food Workers Union (@CAFastFoodUnion) February 9, 2024
The union highlighted various studies, including one in 2024 that found no fast food jobs were lost when California and New York increased their minimum wage to $15; another in 2018 that showed a slight increase in restaurant and food service employment in six cities that raised their minimum wage; and yet another in 2021 revealing hikes in state and local minimum wages had no effect on McDonald's opening or closing restaurants.
"According to the data, there's no reason why the new fast food minimum wage of $20 per hour in California should mean layoffs or increased prices," Alí Bustamante, deputy director for the Worker Power and Economic Security program at the Roosevelt Institute, said last week. "Profits in the fast food industry are sufficiently high to absorb the greater operating costs and ensure industry workers are paid fairly."
As More Perfect Union noted, McDonald's made $8.5 billion in profit last year, while Burger King's parent company raked in $1.2 billion, and Starbucks enjoyed $4.1 billion in profits.
Additionally, a new Roosevelt Institute analysis co-authored by Bustamante found that the 10 largest publicly traded fast food companies spent $6.1 billion on stock buybacks last year alone. This, while fast food prices soared by 46.8% over the past decade compared with 28.7% for the average of all prices. In 2023, fast food companies charged their customers 27% above their production costs. Critics have accused these and other corporations of "greedflation."
"In 2022, fast food industry employment in California had increased to approximately 553,000 workers—a 20.1% increase since 2014," the analysis notes. "Trends in the California fast food labor market have mirrored the national averages. Yet between 2014 and 2023, the federal minimum wage remained stagnant at $7.25 per hour, while California's minimum wage increased from $9 to $15.50 an hour—further evidence that California fast food firms can readily adjust to minimum wage increases."
The U.S. federal minimum wage of $7.25 an hour has not been raised since 2009, and that amount is worth far less now than it was then due to inflation.
"This is an insult to American workers and bad for our economy," former U.S. Labor Secretary Robert Reich said in a video published Monday by the Gravel Institute.
"It's simply a myth that raising the wage automatically means lost jobs," Reich asserted. "Here's the bottom line: If your business depends on paying your workers starvation wages, you should not be in business."
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