Clara Mattei in The Guardian:
The Fed’s recipe to bring prices under control will increase the cost of borrowing money, which is good news for creditors, while heavily indebted households that rely on loans for their daily survival will face higher bills.
The cost of borrowing will also increase government expenses for public works and social services, forcing states to further cut their budget, hurting the most precarious parts of society that rely most on these services.
Most importantly, as Powell himself has acknowledged, lowering incentives for businesses to invest will produce unemployment.
What Powell does not say is that the “pain” for working-class Americans is not an accident or even an unintended consequence.