Today, as the Federal Reserve begins its two-day meeting to determine potential interest rate hikes, Groundwork Collaborative’s Chief Economist Rakeen Mabud released the following statement warning against a premature rate hike:
“There is absolutely no reason for the Federal Reserve to raise rates when we are still in the midst of a fragile recovery. Raising rates at this moment will do nothing to address the real culprits behind rising prices: powerful corporations lining their pockets at our expense and chronic underinvestment in our supply chains. The longer we allow companies to take advantage of moments of crisis to pad their profits, the more cover it gives them to raise prices on workers.
“Raising rates now would only entrench long-standing inequities and hurt the people who are bearing the brunt of price hikes. The Fed should stay laser-focused on achieving full employment for all workers – especially Black workers who have been historically neglected in Fed policy decisions.”
The Groundwork Collaborative’s mission is to advance an economic vision for strong, broadly shared prosperity and true opportunity for all. Visit our website and follow us on Twitter @Groundwork.