- In a letter Monday they raised concerns that the Fed’s monetary policy strategy has “potential to throw millions of Americans out of work.”
- The rate hike would be the 10th increase since last year, as central banks have tried to tame inflation.
The benchmark federal funds rate is the highest since 2007 after nine consecutive rate increases by the Fed since last year.
- The failures of Silicon Valley Bank and Signature Bank in march have also left the US economy “event more vulnerable to an overreaction by the Fed.
- They also cited the lowest year-over-year consumer price index in nine months, a resilient labor market, and a 3.5% unemployment rate as proof further rate hikes are unnecessary.
Back in February, Jerome Powell said he believes “that there’s a path to getting inflation back down to 2% without a really significant economic decline or significant increase in unemployment.”
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