Hotter-than-expected inflation data published Wednesday intensified fears among progressive economists that the Federal Reserve — in its single-minded drive to tame price increases — will needlessly lock in another major interest rate hike at its policy meeting later this month, further suppressing economic demand and moving the country closer to a recession.
"This morning's report highlights the fact that aggressive interest rate hikes by the Fed have done little to combat the inflation that continues to take a toll on workers, families and small businesses across the country," said Dr. Rakeen Mabud, chief economist at the Groundwork Collaborative. "Additional rate hikes would push millions out of work and ... raise the risk of a recession that would only worsen economic pain."
