https://sputnikglobe.com/20221016/bernie-sanders-says-the-fed-is-hurting-more-than-helping-1101907676.html
Bernie Sanders Says the Fed is Hurting More than Helping
Bernie Sanders Says the Fed is Hurting More than Helping
Sputnik International
The Federal Reserve has been trying to tame inflation by raising interest rates. They have raised rates five times so far in 2022. Another hike is expected by... 16.10.2022, Sputnik International
2022-10-16T21:05+0000
2022-10-16T21:05+0000
2022-10-16T21:05+0000
americas
us
bernie sanders
us federal reserve
inflation
https://cdn1.img.sputnikglobe.com/img/07e6/01/13/1092366147_0:112:3072:1840_1920x0_80_0_0_5a14732a2862f6fd2b3ce6692e44af23.jpg
Vermont Independent Senator Bernie Sanders says that the Federal Reserve’s attempts to rein in inflation are hurting the economy more than they are helping.Sanders also noted that he would not increase interest rates further.In May, Federal Reserve Chair Jerome Powell blamed inflation on high wages and laid out a plan to bring wages down to lower inflation.Sanders also said that he doesn’t believe the American Rescue Plan is a major contributing factor to inflation. He notes that inflation is high around the world, even in countries without similar stimulus packages. The American Rescue Plan has been blamed for high inflation by the Republican party.Sanders also does not think wages, which have been outpaced by inflation, are the main driver of increased prices. “Inflation globally is caused by the pandemic and the break in supply chains,” The Vermont Senator said while also blaming the situation in Ukraine and “incredible corporate greed.”A paper published by the Federal Reserve Bank of Boston in May said that corporate monopolies are “an amplifying factor” for inflation. The study, which also noted that the US economy is at least 50% more concentrated than it was in 2005, said that monopolies allow corporations to pass on higher costs to the consumer rather than being forced to reduce profits to remain competitive.In August, Bloomberg reported that corporate profit margins are higher than they have been since 1950, showing that companies have been able to pass on increased costs, and then some, to their customers.
https://sputnikglobe.com/20221014/us-inflation-could-reaccelerate-after-slight-pause-if-fed-fails-to-continue-boosting-rates-1101866096.html
americas
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
2022
News
en_EN
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
us, bernie sanders, us federal reserve, inflation
us, bernie sanders, us federal reserve, inflation
Bernie Sanders Says the Fed is Hurting More than Helping
The Federal Reserve has been trying to tame inflation by raising interest rates. They have raised rates five times so far in 2022. Another hike is expected by the end of the year. Despite these attempts, inflation has remained stubbornly high.
Vermont Independent Senator Bernie Sanders says that the Federal Reserve’s attempts to rein in inflation are hurting the economy more than they are helping.
“I think they’re hurting the situation,” Sanders said on NBC’s Meet the Press. “I think it is wrong to be saying the way we deal with inflation is by lowering wages and increasing unemployment. That is not what we should be doing.”
Sanders
also noted that he would not increase interest rates further.
In May, Federal Reserve Chair Jerome Powell blamed inflation on high wages and laid out a plan to bring wages down to lower inflation.
“[With increased rates] we could see [job] vacancies come down, and as a result—and they could come down fairly significantly and I think put supply and demand at least closer together than they are, and that that would give us a chance to have lower—to get inflation—to get wages down and then get inflation down without having to slow the economy and have a recession and have unemployment rise materially,” Powell
told reporters after a Federal Reserve monetary policy meeting.
Sanders also said that he doesn’t believe the American Rescue Plan is a major contributing factor to inflation. He notes that inflation is high around the world, even in countries without similar stimulus packages. The American Rescue Plan has been blamed for high inflation by the
Republican party.
14 October 2022, 22:40 GMT
Sanders also does not think wages, which have been outpaced by inflation, are the main driver of increased prices. “Inflation globally is caused by the pandemic and the break in supply chains,” The Vermont Senator said while also blaming the situation in Ukraine and “incredible corporate greed.”
A paper published by the Federal Reserve Bank of Boston in May said that
corporate monopolies are “an amplifying factor” for inflation. The study, which also noted that the US economy is at least 50% more concentrated than it was in 2005, said that monopolies allow corporations to pass on higher costs to the consumer rather than being forced to reduce profits to remain competitive.
In August, Bloomberg reported that corporate
profit margins are higher than they have been since 1950, showing that companies have been able to pass on increased costs, and then some, to their customers.
