'We strongly urge you to respect the Fed's dual mandate, pause your rate hikes, and avoid engineering a recession that destroys jobs and crushes small businesses,' wrote SenWarren, SenSanders, and 8 other lawmakers.
The members of Congress echoed that fear in their letter to Powell, writing that"history casts doubt on the Fed's ability to engineer an unemployment rate that just 'rise[s] a bit.'"
"Since World War II, the unemployment rate has never increased by one percentage point within a year outside of a recession: the unemployment rate has increased by one percentage point 12 times since 1945, and in all 12 times that increase has been in the context of a recession," they noted."And every time the unemployment rate increased by a full percentage point, it continued to increase far beyond that level.
"Continuing to raise interest rates," they wrote,"would be an abandonment of the Fed's dual mandate to achieve both maximum employment and price stability and show little regard for the small businesses and working families that will get caught in the wreckage." Despite such urgent warnings, the Fed is widely expected to raise interest rates by 25 basis points on Wednesday.reported Tuesday,"the Federal Open Market Committee is expected to raise its benchmark policy rate to a new target range of 5-5.25%, the highest level since mid-2007."
Fed-induced economic fears have been compounded by House Republicans' refusal to lift the debt ceiling, obstruction that is pushing the U.S. and global economies
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