Independent Vermont Sen. Bernie Sanders said the Federal Reserve is not helping Americans deal with crushing inflation.
Appearing on NBC’s “Meet the Press” Sunday, Sanders claimed that the Fed’s policy of raising interest rates, thereby slowing down the economy to lower inflation, is actually making difficult times worse for working families.
“I think they’re hurting the situation,” Sanders said. “I think that it is wrong to be saying ‘the way we are gonna deal with inflation is by lowering wages and increasing unemployment.’ That is not what we should be doing.”
“This inflation thing is a real issue, it is a global issue, but at a time when working families are struggling and the people on top are doing phenomenally well, I think you don’t go after working people,” he added.
Sanders also said he would not raise interest rates any further. But he refused to attribute reckless government spending as the root cause of inflation. Instead, Sanders repeated the Democrats’ stance on the issue, blaming supply chain disruptions from the COVID pandemic, the war in Ukraine, and greedy corporate interests.
“Inflation globally is caused by the pandemic and the break in supply chains,” he said. “It is caused by, in my view, the war in Ukraine, obviously, and it is also caused by incredible corporate greed. And I hope everybody understands that when you go to the gas [pump], you fill up your car today, the oil companies are making huge profits, the food companies are making huge profits…pharmaceutical industry is making huge profits. We’ve got to deal with that issue.” Sanders said.
Sanders’ comments come in the wake of another dismal report that showed inflation rose 8.2% between September 2021 and September 2022. The month-to-month increase of 0.4% exceeded analysts’ forecasts, while core inflation — which factors out the more volatile food and energy categories — reached 0.6% against an estimate of 0.4%. Despite energy costs falling in some categories, a 0.8% surge in food prices and a 0.7% increase in shelter prices contributed to the headline number.
Year-over-year inflation in September was essentially unchanged since the previous month’s reading of 8.3%. Lower energy costs produced a moderation from the 9.1% inflation rate in June and the 8.5% rate in July, although gasoline prices have since returned to an upward trajectory.
Policymakers at the Federal Reserve had raised target interest rates by 0.75% last month, a move which followed two identical hikes in June and July, in an attempt to relieve elevated inflationary pressures. The continually elevated price levels may prompt further action.
Ben Zeisloft contributed to this report.