The Fed’s interest rate hikes are going to hit the most vulnerable | Dean Baker

Instead of throwing the most disadvantaged out of work, rises should be paused until the effect of previous hikes plays out

When the Federal Reserve board hiked interest rates by another three-quarters of a point this week, the move was widely applauded by the business press. The rate hike showed the Fed's commitment to fighting inflation.

While this is arguably true, it also showed the Fed's willingness to make the most disadvantaged groups pay the price for slowing a burst of inflation that they did not cause. In effect, Black people, Hispanic people, people with less education and people with criminal records are being forced to sacrifice to end a spurt of inflation caused by the pandemic and Russia's invasion of Ukraine.

Dean Baker is senior economist at the Center for Economic and Policy Research