The Federal Reserve hiked interest rates again Wednesday even as criticism mounts that rate hikes could hurt workers too much.
The Fed’s strategy has received more pushback in recent weeks from economists, Democrats and labor advocates who say higher interest rates could wind up punishing workers without fixing inflation.
“Increasing interest rates signals to working people that the government thinks we have too much money and we should have less money to spend,” AFL-CIO President Liz Shuler said Wednesday.
“A chorus of economic experts have warned [that] hiking interest rates again is a recipe for millions of Americans receiving pink slips, yet the Fed has decided to triple down on what is not working,” said Liz Zelnick, a spokeswoman for the liberal group Accountable.US.
Claudia Sahm, a former Fed economist, said that more rate hikes will eventually “push financial markets to a breaking point.”
Earlier this week, a dozen…
