In the US, Senate Banking Committee Chairman Sherrod Brown sent a letter to Fed Chairman Jerome Powell, warning him to be careful when tightening monetary policy. Brown reminded that the Fed is responsible for ensuring full employment as well as inflation.
In the US, Senate Banking Committee Chairman Sherrod Brown asked that millions of Americans suffering from high inflation due to tightening also do not face losing their jobs.
Addressing Fed Board members in a letter to Powell, Brown said: “Fighting inflation is your job, but you must also remember that you have a responsibility to ensure full employment.
“We need to avoid making short-term gains and avoiding the strong labor market succumbing to the consequences of aggressive monetary policy steps to reduce inflation.”
Brown’s letter made no request from Powell or the Fed to slow or stop rate hikes. It was urged to continue to play cautiously in light of synchronized interest rate hikes by central banks around the world and the risk that Russia’s war in Ukraine could create “a real worsening of the global economic situation.”