Federal Reserve Finally Does the Right Thing for Working People

Friday, June 16, 2023

Statement from AFL-CIO President Liz Shuler on the Federal Reserve’s decision to hold on raising interest rates:

The Federal Reserve’s decision today not to raise interest rates was the right call for working people. For more than a year, the Fed has raised interest rates without fully considering the root causes of the current inflation. The bottom line is that increased employment and better wages for workers are not causing inflation. Record corporate profits achieved through companies’ price gouging working people and choosing their shareholders over their customers is what is responsible. The war in Ukraine, the impacts of climate change and a weakened supply chain are to blame. Inflation is not an excuse to roll back job and wage growth, risk a recession and put millions out of work.

Continually raising interest rates without taking time to evaluate the effects of increased rates has been the wrong practice. It forces working people to choose between their mortgages and their meals. We support the Federal Reserve’s decision today and hope this signals a new direction moving forward. Working people shouldn’t be punished for simply doing what’s necessary to support their families.