Sanders blasts Fed over interest rate hike

Getty Images

Sen. Bernie SandersBernie SandersSunday shows preview: Both sides gear up for debate UK's Corbyn calls for unity after reelection as Labour Party head Green group endorses in key Senate races MORE (I-Vt.) blasted the Federal Reserve on Wednesday for raising interest rates for the first time since the financial crisis.

The presidential candidate called the Fed's move “bad news for working families,” and argued it needed to be doing more, not less, to boost the economy.

ADVERTISEMENT
“At a time when real unemployment is nearly 10 percent and youth unemployment is off the charts, we need to do everything possible to create millions of good-paying jobs and raise the wages of the American people,” he said in a statement. “The Fed should act with the same sense of urgency to rebuild the disappearing middle class as it did to bail out Wall Street banks seven years ago."

The Fed announced Wednesday that it would raise interest rates by 0.25 percent, its first rate hike since 2006, and the first time rates moved from near zero since the end of 2008.

The central bank justified the hike by saying the economy had improved enough to support it, and emphasized that it would be moving very gradually to bring borrowing costs back up to more historically normal levels.

But liberals like Sanders have argued that slow wage growth has left many Americans not feeling the impact of the ongoing recovery, and more needs to be done before stepping on the brakes.