Groundwork’s Dr. Rakeen Mabud Calls on Fed to Permanently Halt Rate Hikes

Groundwork’s Dr. Rakeen Mabud Calls on Fed to Permanently Halt Rate Hikes

Chair Powell is expected to pause his year-long rate hiking campaign during today’s Federal Open Market Committee (FOMC) meeting. Groundwork Collaborative’s Chief Economist Rakeen Mabud released the following statement:

“Inflation is down and the job market remains strong. We never had to choose between lower prices and a strong labor market.

“Today, Chair Powell must concede that you don’t have to destroy the labor market to bring down prices. That starts with not only skipping today’s rate hike, but permanently halting this dangerous rate-hiking campaign.”

Email press@groundworkcollaborative.org to speak with Dr. Mabud ahead of Chair Powell’s June interest rate decision and press conference this afternoon.

BACKGROUND

• Groundwork has been sounding the alarm about the Fed’s approach to inflation for months, making the case against needless and dangerous rate hikes.
• Dr. Rakeen Mabud joined Yahoo Finance live yesterday to analyze this week’s Consumer Price Index report. The data showed inflation cooled for the 11th straight month in May, further evidence that we do not have to choose between lower prices and low unemployment.
• A new piece by Eric Levitz in New York Magazine discredited Larry Summers’ false and widely cited view that the only way to stop inflation is to deliberately throw millions of Americans out of work.
• In March, Groundwork and Lake Research released polling highlighting voters’ increasing distrust of the Federal Reserve, opposition to continued rate hikes, and interest in the Federal Reserve prioritizing policies that help workers and families.