Crockett Calls on Fed to Halt Rate Hikes

WASHINGTON – Today, Congresswoman Jasmine Crockett (TX-30) sent a letter to Federal Reserve Chairman Jerome Powell calling for a pause on interest rate hikes, citing strong, ongoing signs of economic normalization in her Dallas district. As representative for the Federal Reserve regional bank based in Dallas, Crockett noted that the rate hikes are hitting employers and workers in her district hard, and highlighted the disproportionate impact of a potential slowdown on her constituents - namely, Black and Latino workers.

Crockett notes that as a result of the Fed's previous actions and the actions of the Biden Administration, inflation is already at its lowest level in two years. Rather than an indefinite pause, Crockett is calling for a waiting period of three months to allow the impacts of previous rate hikes to be reflected in the economy.

Crockett writes in part, "I have grave concerns about the long-lasting damage that further rate increases may pose to our workers, families, and the economy. Given that we are already seeing the fruits of the Federal Reserve’s labor, I believe it is prudent that you pause rate increases until we have had time to observe market effects, conduct extrapolation exercises, and better understand whether the current positive trends will continue. Should an over-correction at this stage occur, not only will people suffer from higher rates, but long-term economic growth may too be irreparably harmed.  This harm can be avoided by simply pausing rate increases and maintaining the July restrictive policy for an extended period of time instead."

The full letter can be viewed here

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Congresswoman Jasmine Crockett represents portions of Dallas and Tarrant Counties, with the cities of Dallas, Grand Prairie, DeSoto, Cedar Hill, Lancaster, Duncanville, Glenn Heights, Hutchins, Wilmer, Arlington, Ovilla, and Seagoville.