’You’re Trying to Put People Out of Work’: Sen. John Kennedy Confronts Powell, Who Says He’s Trying to ‘Cool the Economy’

Louisiana Senator John Kennedy and Federal Reserve Chair Jerome Powell discussed burning issues at a Senate Banking Committee hearing on Tuesday.

The video posted on TikTok surpassed 1.6 million views, making it one of the most watched on the account Make The Truth Great Again.

The officials established that unemployment could rise to about 2 million lost jobs.

John Kennedy asked Powell, “When you’re slowing the economy, you’re trying to put people out of work. That’s your job, is it not?”

Powell replied, “Not really. We’re trying to restore price stability.”

Kennedy asked, “You’re raising interest rates to slow the economy?

Powell nodded and said, “Yes.” He added, “To cool the economy off.”

Regarding measuring the success of the gross domestic product, Kenedy said that it was measured by the unemployment rate. Powell replied that it was indeed one of the measures.

Kennedy concluded that slowing down the economy leads to “putting people out of work.”

Powell replied they were trying to establish “the price stability.”

Kennedy asked again, “You’re trying to raise the unemployment rate?”

Powell explained, “We’re trying to realign supply and demand,” adding that it happens through various channels.

Then Senator Kennedy cited ten disinflation periods in America from the 50s. He stated that “disinflation is what you’re trying to do.”

He continued, “It’s a slowing in the inflation rate.”

In other words, prices only go up at a slower pace.

Kennedy said that based on historical statistics, to get to an inflation rate of 2%, the unemployment rate would have to go up to 3,6%.

Powell said there had been a recession when Fed tried to reduce inflation.

Kennedy reminded Powell that the current inflation rate is 6,4%, but the unemployment rate is 3,4%.

He then said he was not trying to blame anyone, but “if history is right, unless you get some help, to get inflation down from 6,4% to, let’s say, 4,4%, and the unemployment rate is going to have a rise of 7%..”

Then Kennedy claimed that to gain inflation of 2,2%, the unemployment rate would have to be over 10%.

Kennedy’s idea was to cut government spending to help reduce inflation because the Fed’s tools are much blunter and potentially more painful to the labor market.

With the lowest unemployment in five decades, and inflation blowing up, it is good that the two respectfully acknowledged that measures must be implemented.

@make_thetruth_greatagain #usa #unemployment #inflation #johnkennedy #america #world #work #employee #job #patriot #congress ♬ original sound – “MAKE THE TRUTH GREAT AGAIN”

Comments reflect that as someone said, “I gotta respect both of these men. One for revealing the truth and the other for not denying or trying to avoid the answer.”

Others were in fear, as another TikTok user wrote, “We need to find a way to do this without going that far…”

Another shared, “I respect both of them for this conversation.”

However, during the central bank chief’s latest appearance before Congress, things did not go smoothly.

Federal Reserve Chairman Jerome Powell and Senator Elizabeth Warren engaged in a heated discussion. He defended the Fed’s strategy for fighting inflation after receiving criticism from the Massachusetts Democrat.

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