Rep. Warren "Worried Powell May Lead to Economic Recession"... Concerns Over Unemployment

U.S. Senator Elizabeth Warren [Photo by Reuters]

[Asia Economy Reporter Jeong Hyunjin] Elizabeth Warren, a prominent progressive figure of the U.S. Democratic Party, criticized Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), on the 28th (local time), saying she is "very worried that he might lead the economy into a recession."

Warren appeared on CNN's "State of the Union" and said, "Do you know what is worse than high inflation and a strong economy? High inflation and millions of unemployed." She added, "The global economy is still not fully functioning due to COVID-19, supply chain issues persist, the Ukraine war is driving up energy costs, and large corporations continue to reap excessive profits," expressing serious concern about these inflationary factors.

She pointed out, "Among the tools Chairman Powell can use, including interest rate hikes, there is nothing that directly addresses these inflationary factors." Warren expressed concern that interest rate hikes would lead to job losses and harm small and medium-sized businesses.

In June, Warren also raised concerns about a potential recession during a Senate Banking Committee hearing and urged Powell to be cautious with interest rate increases. In March, during the Senate Banking Committee vote on Powell's renomination, Warren was the only one among 24 standing committee members to vote against him, citing his deregulation of the financial sector.

Earlier, on the 26th, Powell delivered a speech at the Economic Policy Symposium held in Jackson Hole, Wyoming, emphasizing the importance of price stability and signaling that substantial interest rate hikes could continue, which shocked the market and caused a sharp drop in U.S. stock prices that day.

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