ALEC in The Center Square: Fed rate hike expected, experts give grim economic forecast
Critics of the Biden administration argue Federal Reserve rate hikes could contribute to an economic recession
The Center Square
June 15, 2022
By: Casey Harper
Executive Vice President and ALEC Chief Economist, Jonathan Williams, was featured in a story by the Center Square regarding Federal Reserve interest rates and inflation.
The Federal Reserve meets Wednesday afternoon and is expected to raise interest rates as much as three quarters of a percentage point to combat inflation.
The rate hike has been forced because of inflation, which has risen to the highest level in decades. The latest producer price index showed an increase of 10.8%, and the consumer price index has risen at the fastest pace in four decades.
The rate hike is intended to curb inflation, but experts say it could contribute to an economic recession.
The record high gas prices, soaring inflation and controversial fiscal and energy policies that accompanied it have drawn consistent criticism for the Biden administration.
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“Whether it is the war on reliable and affordable American energy, threats of economically damaging tax increases, or the reckless increase in spending and debt, the Biden administration and big government advocates in Congress are committing economic malpractice,” said Jonathan Williams, chief economist at the American Legislative Exchange Council. “New, and once again devastating, inflation numbers certainly weigh on the Federal Reserve to significantly increase rates. Potential homeowners, small businesses and real estate markets are already bearing the burden of higher interest rates, and this could loom large over future economic growth.”