Federal Reserve Chair Jerome Powell fired back at Sen. Elizabeth Warren in a tense exchange Tuesday over the potential impact of the central bank's interest rate hikes.
She asked what his plan would be if unemployment continues to rise beyond the Fed's projections.
"Well, right now the unemployment rate is 3.4%, which is the lowest in 54 years. And we actually don't think that we need to see a sharp or enormous increase in unemployment to get inflation under control," Powell answered. Federal Reserve Chairman Jerome Powell testifies during a Senate Banking, Housing, and Urban Affairs Committee hearing in the Hart Building Tuesday, March 7, 2023.sharp increase in unemploymentThe Fed chair replied, "Again, we're not targeting any of that, but I would say even 4.5% unemployment is well better than most of the time for the last, you know, 75 years.
"In other words, you don't have a plan to stop a runaway train if that occurs," Warren said. "Chair Powell, you are gambling with people's lives. And there's a pile of data showing the price gouging and supply chain kinks and the war in Ukraine are driving up prices. "You cling to the idea that there's only one solution: lay off millions of workers," she continued. "We need a Fed that will fight for families, and if you're not going to lead that charge, we need someone at the Fed who will."
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