WASHINGTON, D.C. – Pennsylvania U.S. Senator John Fetterman yesterday called out the role of corporate price gouging in boosting inflation during a Senate Committee on Banking, Housing, and Urban Affairs hearing with Jerome Powell, Chair of the Federal Reserve Board of Governors. Senator Fetterman used his time to grill Chair Powell on preserving employment while lowering inflation and the way corporate greed and monopolies contribute to higher costs for Pennsylvania families.
“It’s clear that inflation over the last few years has had many causes, including rampant corporate price gouging and monopolies. While Americans have gotten ripped off, executives and shareholders have raked in record profits. It’s deeply immoral,” said Senator Fetterman.
Senator Fetterman raised concern about the Fed’s dual mandate during his questioning at yesterday’s hearing, asking Chair Powell how the Fed plans to deal with the paradox of lowering inflation without pushing people into unemployment. The Federal Reserve is charged with a dual mandate of “promoting maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.” Many pro-labor economists have pointed out how the Fed has seemed to focus more on its interest-related mandate, which tends to be more important to corporations, rather than its full employment requirements.
Senator Fetterman addressed these corporate interests in his questioning, noting how the companies that jack up their prices are also the ones consistently making record high earnings and accused rampant corporate price gouging and monopolies of contributing to inflation. He pushed Chair Powell to recognize this in the Fed’s fight against inflation.