'A recession caused by the Fed raising rates too aggressively would undo a great deal of the enormous gains that have occurred in the current recovery,' warned one economist.
, U.S. central bankers have provided no indication that they plan to stop raising interest rates any time soon.earlier this week that the central bank is"nowhere near almost done" hiking rates, a sentiment that other officials echoed.
But experts have stressed that inflation is hardly just a U.S. problem, pointing to global supply chain snags caused by the pandemic and major energy market disruptions from Russia's war on Ukraine—price pressures that the Fed can do nothing about. "Rather than the specific policies of the Biden administration driving inflation, the roots of today's inflation are a more complicated cocktail of other forces: from the spike in raw material, energy, and commodities prices due in large part to the Russian invasion of Ukraine, to lingering supply chain disruptions and distorted consumer demand patterns stemming from the pandemic," EPI's Josh Bivens, Asha Banerjee, and Mariia Dzholos wrote in a"This is not an academic...
Instead of potentially recessionary rate hikes, economists and Democratic members of Congress have called for legislation to tackle sky-high prescription medicine prices, housing costs, and child care expenses. Senate Democrats are on the verge of passing the Inflation Reduction Act, compromise legislation that would modestly cut drug costs for Medicare recipients.a group of nearly 130 leading economists, the bill would put"downward pressure on inflation."
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