on. these extreme rate increases are something that he should not be doing. why? and the reason for that is twofold. the first is to remind chair something that he should not be doing.tion and he why? and the reason for that is twofold. the first is to remind chair powell he has a dual mandate yes, he is responsible for dealing with inflation and he is trying to in effect slow down the economy so that this is by the fed s own estimate, 2 million people will lose their also responsible for employment and what chair powell is trying to do and he has said fairly explicitly is that they are trying to in effect slow down the economy so that this is by the fed s own estimate, 2 million people will lose their jobs, and i believe that is not what the chair of the federal reserve should be doing. i want to make a second point on inflation as well though there are other drivers of the cost increase. for example, price gouging and supply chain kinks and the war in ukraine raising interest rates d
hikes that he has been doing? here s the thing you have to remember. the fed just as this one tool, raise interest rates and yet, there are whole lot of things that are causing prices to go up. we know that the pandemic, the supply chain kinks, we know that price gagen gouging, but we also knows the raisin interest rates is not gonna bring down the cost of housing. it s not gonna make it easier for someone to buy their first house. and it doesn t make it easier for builders to come in and build new housing which is what we need to bring those prices down. i just keep trying to remind him, there is a difference between landing a plane and crashing a plane. with these big increases. yesterday s data made a soft landing seem possible, and i think we can get that senator elizabeth warren always a pleasure. still ahead, new text releases
hikes that he has been doing? here s the thing you have to remember. the fed just has this one tool, raise interest rates and yet, there are whole lot of things that are causing prices to go up. we know that the pandemic, the supply chain kinks, we know that price gouging, but we also know the raise in interest rates is not going to bring down the cost of housing. it s not going to make it easier for someone to buy their first house. and it doesn t make it easier for builders to come in and build new housing which is what we need to bring those prices down. i just keep trying to remind him, there is a difference between landing a plane and
beginning to be invested in the economy. we will end up having a harder time getting it under control. we have to get this under control now. no matter what it takes, what he said that? look, do not treat this as well they ve done this before. that s business is usual. we have to stop and take a deep breath. these are extraordinary rate increases. there have been three of them now back to back. with this cumulative effect. my concern here is that the fed just has one tool in its tool box. it is the interest rate tool and it will certainly have some impact on inflation no one denies it but there are other factors that are driving inflation. covid continues to be a problem all around the world shutting down economies at different points. we continue to have supply chain kinks. the war in ukraine, we have certainly watched energy prices
chain kinks. the war in ukraine. we certainly have watched energy prices come down, but we also have a problem that ukraine is not producing the food and putting that into the international supply. and we still have companies that are engaging in enormous price gouging. so i had asked chair powell in open hearings, can your rate increases have any influences on this? his answer is no. we can t do anything about them. so what is going on here is that powell is using the one tool he has, which also will have the effect of driving up unemployment across the country. estimates on this latest one is somewhere around 1 million jobs that could be lost from this. that is people, that hurts. i get it. high prices are a problem. we need to deal with those high prices. but we deal with them by