US Senator Warren: Fed will tip US economy into recession

Democratic US Senator Elizabeth Warren expressed her concerns on Sunday about a potential recession in the US economy, courtesy of the hawkish stance of Fed Chair Jerome Powell.

Key quotes

"Do you know what's worse than high prices and a strong economy? It's high prices and millions of people out of work. I am very worried that the Fed is going to tip this economy into recession.”

"What he calls 'some pain' means putting people out of work, shutting down small business because the cost of money goes up because the interest rates go up.”

"There is nothing in raising the interest rates, nothing in Jerome Powell's tool bag, that deals directly with those and he has admitted as much in congressional hearings.”

Market reaction

The US dollar rampage extends in early European trading, as risk-aversion and the bond market sell-off deepen on hawkish rhetoric by major global central bankers. The US dollar index is now trading at a fresh two-decade high of 109.48, gaining 0.60% on the day.