Democrats Say Fed Risks Economic Harm, Showing Unease With Hikes
- A few Democrats go public with Fed criticism after rate hike
- Powell says pause was considered but rejected due to prices
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The Federal Reserve’s latest rate increase drew rebukes from Senator Elizabeth Warren, Senate Majority Leader Chuck Schumer and a senior House Democrat on Wednesday, showing the party’s anxiety about a potential recession before the 2024 presidential election.
“The Fed under Chair Powell made a mistake not pausing its extreme interest rate hikes,” Warren said in a tweet, after the Fed bumped its benchmark rate a quarter-point and indicated further tightening was possible.