Democrats warn Fed’s rate hikes may trigger recession ...Middle East

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Democrats warn Fed’s rate hikes may trigger recession
Senate Democrats are calling on the Federal Reserve to proceed cautiously on raising interest rates when board members meet this week, warning that fighting inflation too aggressively could hurt the economy. Gross domestic product (GDP) data for the second quarter will be published this week and is expected to show a contraction in growth. But Democrats in Congress are adopting the administration’s talking points to argue that two quarters of negative growth does not necessarily signal a recession, pointing to the strong labor market and rising wages, even if those positive developments are overshadowed by inflation. “The economy is strong but if Fed Chair [Jerome] Powell continu

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