Washington, D.C. (03/23/22) – Federal Reserve Chair Jerome Powell is urging the government to take aggressive action that will combat record-high inflation. This week, Powell announced that the Federal Reserve would raise its benchmark short-term interest rate faster than expected to drive down the increasing costs that are affecting Americans across the country.
While top economists at the Federal Reserve are sounding the alarm, some members of Congress are trying to pass legislation, like S. 2992, the American Innovation and Choice Online Act (AICOA), that could spike costs for Americans. A new report by National Economic Research Associates estimates that AICOA and other similar bills could cost American consumers and business users $319 billion.
“Right now, inflation is making it harder for Americans to afford basic goods like gas and groceries. While our country’s top economists are calling for urgent action to drive down costs, a group of politicians is focused on pushing policies that could do the exact opposite. Congress should take real steps to ease costs and reject bills, like S. 2992, that could double down on inflationary pressure,” said Chandler Smith Costello, a spokeswoman for the Don’t Break What Works Campaign.
Powell admitted that many experts “widely underestimated” inflation and warned that “no one expects that bringing about a soft landing will be straightforward in the current context.”
- The Wall Street Journal: Powell Says Fed Will Consider More-Aggressive Interest-Rate Increases to Reduce Inflation
- The New York Times: Powell Says Fed Could Raise Rates More Quickly to Tame Inflation
- CNBC: Powell says ‘inflation is much too high’ and the Fed will take ‘necessary steps’ to address
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