Sen. Bernie Sanders (I-VT) claimed on Sunday that the Federal Reserve is “hurting” the US economy as it braces for a potential recession.
“I believe they are making matters worse. When asked on NBC’s “Meet the Press” whether recent Federal Reserve policies had a positive or negative impact on the economy, Sanders responded, “It is wrong to be claiming that the way we’re going to deal with inflation is by decreasing wages and raising unemployment.” “We shouldn’t be doing that,” someone said.
In an effort to stop price increases, the Fed has recently taken steps to slow the economy, including hiking interest rates. These actions run the danger of sparking a recession. The actions of Chair Jerome Powell have mostly received bipartisan backing, with progressives like Sanders standing for a minority opposition.
Sanders added, conceding that inflation is “a worldwide issue,” “I don’t think you go after working people at a time when working families are hurting and the ones at the top are doing fantastically well.”
According to Sanders, Democrats should keep discussing economic issues, such as raising the minimum wage, in a way that focuses their campaigns on working people and sets them apart from their rivals. He made reference to Republican concerns about privatising Medicare and Social Security and referred to either program’s elimination as “grotesque.”
Sanders stated that “Democrats have to hold them accountable for those reactionary attitudes.”
A recession is “possible but not inevitable,” according to Transportation Secretary Pete Buttigieg of the Biden administration, who made the comment on ABC’s “This Week” on Sunday.
Although import costs have decreased and issues with the supply chain have improved recently, crucial inflation rates have remained high, making the economy a risky political topic for President Joe Biden and his fellow Democrats.
Sen. Elizabeth Warren (D-Mass.) expressed her concern that the Fed will push the country into a recession in August.
