Organized labor is furious with the Federal Reserve following its decision to once again raise interest rates by 0.75% in order to tackle inflation.
Chairman Jerome Powell announced the fourth consecutive rate hike on Wednesday, saying that the problem of inflation would likely linger in the economy. “It will take some time for inflation to come down,” he said.
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) President Liz Schuler decried Powell’s decision, however, saying it would cause further harm to already struggling persons.
“The Fed seems determined to raise interest rates, though it openly admits those rates could ruin our current economy as unemployment remains low and people are able to find jobs,” she said, per The Hill. “The Fed’s actions will not address the underlying causes of inflation — the war in Ukraine, climate change’s effect on harvests and corporate profits, and an increase in the chances that the United States enters a recession.”
Schuler’s attribution of inflationary woes to the War in Ukraine came in contrast to other reactions, that pointed to the policies of President Joe Biden’s administration as the cause.
“The fed’s decision to raise rates is a black eye on the Biden administration,” Job Creators Network CEO Alfredo Ortiz said of the rate increase. “The highest inflation rate in four decades cannot be blamed on ‘Putin’s Price Hike,’ it is a direct result of the Democrats’ policies, including higher taxes and stifled domestic energy production.”
Traditionally a left-leaning institution, organized labor’s discontent with the economic situation could potentially play into the recently lessened Democratic prospects for the midterm elections.