Former Labour Sec. Critiques Fed Rate Hike

FILE – In this Feb. 12, 2020, file photo Federal Reserve Chairman Jerome Powell testifies before Fotografía de archivo del 12 de febrero del presidente de la Reserva Federal, Jerome Powell, testificando ante la Comisión Bancaria del Senado en el Capitolio en Washington. (AP Foto/Susan Walsh, Archivo)

DELMARVA- The Federal Reserve is coming under fire from critics about its decision to raise rates to combat inflation. Former Labor Secretary under the Clinton Administration Robert Reich in an interview with CNN warned against raising rates, pointing to previous times the fed has raised rates to cut consumer prices, the effects lasted longer than anticipated and resulted in more job loss. 
Dorchester County Chamber of Commerce President Bill Christopher tells us, those concerns might be overblown.
He says he’s confident the slow approach to raising rates will still benefit consumers.
He says the difference at this moment is the power that job seekers have over employers, and the number of available positions still left unfilled in the service and retail industries. He tells he believes as long as the rate hikes are gradual, it will help to increase consumer purchasing power without hurting businesses too strongly.

“You can’t ignore inflation, so I think you have to balance what will happen but to go out and wave the flag that ‘hey you raised rates and unemployment will go through the roof’ is premature, they need to raise the rates carefully which is what they are talking about doing and adjust appropriately,” Christopher said. 

He tells us unemployment, was high during the summer of 2021, even with record low rates, due in part to extensive government safety nets and safety concerns for frontline workers. He tells us, even those still holding off on returning to the workforce could still benefit from the rate hike, as it would increase the purchasing power of their salary should they return, as inflation begins to fall.