Groundwork’s Rakeen Mabud: “Fed’s actions are heightening the risk of recession”

May 2, 2023

Groundwork’s Rakeen Mabud Ahead of FOMC: “Fed’s actions are heightening the risk of a painful recession”

Chair Powell and the Federal Reserve are expected to raise interest rates by 25 basis points at this week’s Federal Open Market Committee (FOMC) meeting. This would be the 10th straight rate hike in 14 months.

Groundwork Collaborative’s Chief Economist Rakeen Mabud released the following statement:

“Chair Powell and the Fed have made it clear that high interest rates are here to stay, even if it means trampling on one of the strongest labor markets in history. The Fed’s actions are heightening the risk of a painful recession and causing instability in financial markets. If the Fed insists on raising rates again this week, it is jeopardizing the progress we have made towards building a healthier and more inclusive economy for all.”