Press Call Today, 4PM ET: Economists React to Fed Chair Powell’s Testimony
July 14, 2021 Groundwork Collaborative
In light of Consumer Price Index projections and in advance of Federal Reserve Chairman Jay Powell’s appearance before the House Financial Services, it’s important to understand that inflation fears are overstated and misrepresented.
We cannot allow misguided fears about temporary, manageable inflation to lead to misguided monetary policies. As Dr. Rakeen Mabud, Groundwork’s Chief Economist and Managing Director of Policy and Research, told Bloomberg Business: “Inflation fears at the moment are really just a smokescreen for choosing not to invest.”
Interested in learning more? Join Dr. Mabud and other leading economists for a press call TODAY at 4 p.m. ET. RSVP for the call HERE.
- Experts agree that the higher inflation we are experiencing right now is temporary, the result of rising consumer demand, supply chain disruptions, and labor market pressures. Surging prices for used cars and trucks was one of the main drivers last month, accounting for more than a third of the inflationary spike.
- The costs of spending too little far outweigh the costs of manageable inflation. When we are still 7.6 million jobs away from pre-pandemic employment and with Black unemployment still at crisis levels, the Fed must do what it can to ensure a full and inclusive recovery for all workers.
- We cannot afford to retread the mistakes of the past. During the 2009 Recession, policymakers fell for misguided concerns about inflation and hit the brakes on stimulus spending too early. But history tells us that the best thing to do in a crisis is to invest big to make sure the most marginalized aren’t left behind.
- The bottom line: we need to invest more, not less. If we are going to achieve full employment, create quality jobs, and restore our long-term economic potential, we need to invest in the workers and families who make up our economy. Because WE are the economy.
About Groundwork Collaborative
The Groundwork Collaborative’s mission is to advance an economic vision for strong, broadly shared prosperity and true opportunity for all. Learn more at https://groundworkcollaborative.org/ and follow us on Twitter @groundwork.