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Federal Reserve Chairman Jerome Powell Faces Political Pressure Over Interest Rate Hikes – Economics Bitcoin News

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U.S. Senator Sherrod Brown has told Federal Reserve Chairman Jerome Powell that the Federal Reserve has a “double mandate” when it comes to making decisions on rate hikes at the next Federal Open Market Committee (FOMC) meeting. I requested not to forget the date. “It is your job to fight inflation, but at the same time you must not lose sight of your responsibility to ensure full employment,” the senator told the Fed chairman.

US Senators Remind Powell of Fed’s Dual Mandate

US Federal Reserve (Fed) Chairman Jerome Powell faces political pressure over his decision to raise interest rates. Sen. Sherrod Brown (D-Ohio), chairman of the Senate Committee on Banking, Housing and Urban Affairs, sent a letter to Powell on Tuesday saying that he would have the Fed’s double Asked to review authority. Federal Open Market Committee (FOMC) meeting.

Senator Brown wrote:

As you know, the Federal Reserve has the dual mandate of maximizing employment, stabilizing prices, and promoting moderate long-term interest rates in the U.S. economy.

“It is your job to fight inflation, but at the same time you must not lose sight of your responsibility to ensure full employment,” he stressed.

“For working Americans who are already feeling the crushing inflation, unemployment makes the situation even worse. explained in detail.

Please remember our responsibility to promote maximum employment and ensure that the decisions we make at our next FOMC meeting reflect our commitment to our dual mandate.

A spokesman for the Fed reportedly confirmed that Powell received the letter Brown sent and said its normal policy is to respond directly to such correspondence.

Commenting on Brown’s letter to Powell, Mark Zandy, chief economist at Moody’s Analytics, said: Without low and stable inflation, there is no way to achieve full employment. ‘ he added:

He sticks to his guns with this one. I doubt this will have a material impact on the Fed’s decision-making.

Quincy Crosby, Chief Equity Strategist at LPL Financial said: Hard to know. Regarding Brown’s letter, the strategist said, “I don’t think it will affect him.”

he knows the pressure. He knows politicians are getting more and more nervous about losing seats. By the way, at this point there’s little he can do to help either party.

Peter Boockvar, Chief Investment Officer, Bleakley Advisory Group, commented: Hiring is fine for now, but you have to believe that as the months go on and growth continues to slow and layoffs start to rise at a more noticeable pace, pressure levels will mount. “

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Do you think the Federal Reserve is under political pressure to raise rates? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin has been an evangelist since he discovered Bitcoin in 2011. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.




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