Elizabeth Warren attacks Fed in sign of new political pressure
A new attack on the Federal Reserve from Sen. Elizabeth Warren is an early sign the central bank faces a rocky path ahead in navigating politics.
- It will simultaneously face the music for allowing high inflation to take hold and for the economic pain resulting from its efforts to bring down prices.
Why it matters: The Fed has left itself in a precarious position with lawmakers and the public amid soaring inflation and a newly aggressive game of catch-up that risks a recession.
Driving the news: Warren writes in a Wall Street Journal op-ed that the Fed’s rate-hiking campaign — including another 0.75 percentage point expected Wednesday — “risks triggering a devastating recession.”
- “Unfortunately, the Fed has seized on aggressive rate hikes—a big dose of the only medicine at its disposal—even though they are largely ineffective against many of the underlying causes of this inflationary spike,” Warren writes, citing short supplies…