Today, the Federal Reserve began its two-day Federal Open Market Committee (FOMC) meeting, where it will determine whether to raise interest rates for the 12th time since March 2022.
Groundwork Collaborative’s Acting Executive Director Kitty Richards released the following statement:
“The evidence is clear: inflation skyrocketed last year because supply chain bottlenecks empowered corporations to take record profits and then inflation fell as those bottlenecks eased and supply recovered. We also have record-low unemployment and growing paychecks – all despite the Federal Reserve’s misguided attempts to kick people out of work and keep wages low.
“The Fed should take the data seriously and stop pretending that they can control gas prices or increase the supply of housing by making it harder for workers to pay their bills.”
Last week, Groundwork released a new analysis showing that if you substitute more up-to-date measures of housing costs, inflation is far lower than it appears. Contact press@groundworkcollaborative.org to speak with Kitty Richards about this research and what to expect from the Federal Reserve this week.