{"id":18537,"date":"2023-03-10T04:33:20","date_gmt":"2023-03-10T04:33:20","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/steve-forbes-says-the-fed-is-inflicting-unnecessary-pain-with-interest-rate-hikes-economics-bitcoin-news\/"},"modified":"2023-03-10T04:33:20","modified_gmt":"2023-03-10T04:33:20","slug":"steve-forbes-says-the-fed-is-inflicting-unnecessary-pain-with-interest-rate-hikes-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/steve-forbes-says-the-fed-is-inflicting-unnecessary-pain-with-interest-rate-hikes-economics-bitcoin-news\/","title":{"rendered":"Steve Forbes Says the Fed Is ‘Inflicting Unnecessary Pain’ With Interest Rate Hikes \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

Media mogul Steve Forbes, chairman of Forbes Media, has warned that the Federal Reserve is \u201cinflicting unnecessary pain\u201d on the U.S. economy with its interest rate hikes after Fed Chair Jerome Powell said the Fed is prepared to raise interest rates at a faster pace. He also pointed out \u201cthe fundamental flaw in central bankers\u2019 and most economists\u2019 approach.\u201d<\/strong><\/p>\n

Media Mogul Steve Forbes Warns About Fed Policies<\/h2>\n

Steve Forbes, chairman of Forbes Media, warned on Thursday that the Federal Reserve is \u201cinflicting unnecessary pain\u201d on the U.S. economy. His warning followed Fed Chair Jerome Powell\u2019s testimony<\/a> before the Senate Committee on Banking, Housing, and Urban Affairs.<\/p>\n

\u201cFederal Reserve Chairman Jerome Powell sent financial markets reeling when he told a Senate hearing Tuesday that our central bank is ready to push up interest rates higher and at a faster pace than previously anticipated,\u201d Forbes began. The media mogul noted that Powell\u2019s reason was that the U.S. economy \u201chas been showing unexpected strength; therefore, the Fed may have to do more to suppress it.\u201d The executive stressed:<\/p>\n

\n

Here we get to the fundamental flaw in central bankers\u2019 and most economists\u2019 approach: They think prosperity causes inflation. To cure that, they work to depress the economy.<\/p>\n<\/blockquote>\n

\u201cThey\u2019ve never understood the definition of inflation: reducing the value of a currency, usually by creating too much of it,\u201d the Forbes chairman emphasized, adding:<\/p>\n

\n

Price increases from natural disasters, wars, Covid lockdowns or economy-killing regulations and taxes cannot be cured by jacking up interest rates. The Fed is \u2014 and will be \u2014 inflicting unnecessary pain.<\/p>\n<\/blockquote>\n

Powell told senators during the congressional hearing on Tuesday that \u201cFrom a broader perspective, inflation has moderated somewhat since the middle of last year but remains well above the [Federal Open Market Committee] FOMC\u2019s longer-run objective of 2%.\u201d He explained<\/a>: \u201cWe continue to anticipate that ongoing increases in the target range for the federal funds rate will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.\u201d<\/p>\n

Several Fed officials have also said that more rate hikes are needed to curb inflation. Last week, Bank of America warned that the Fed will keep hiking interest rates until the \u201cpoint of pain<\/a>\u201d for consumer demand. The president of the Federal Reserve Bank of Atlanta has warned of \u201cdisastrous results<\/a>\u201d if the Fed loosens its polity prematurely. Meanwhile, economist Mohamed El Erian said last month that the Fed cannot reach its inflation target of 2% without \u201ccrushing<\/a>\u201d the economy.<\/p>\n

What do you think about the statements by Steve Forbes about the Fed \u201cinflicting unnecessary pain\u201d on the U.S. economy with its interest rate hikes? Let us know in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n