Congressman Reed: Raising Interest Rates Could Have 'Devastating Consequences'
*By Amanda Weston*
If the Federal Reserve continues to raise interest rates, the country may be in for "debt crisis," something "we've been warning about for years," said GOP Congressman Tom Reed.
"The problem we face is, with this growing economy, this huge economy that is just booming across the country, I don't know how the Fed can continue to raise interest rates," Rep. Tom Reed (R-NY) told Cheddar Thursday.
The Dow Jones Industrial Average was down almost 300 points [Thursday afternoon](https://cheddar.com/videos/selloff-spreads) after dropping more than 800 points Wednesday. The S&P was also down for its sixth straight day.
The continued sell-off came after President Trump sharply criticized the Fed on Wednesday night, [saying it's "going wild"](https://www.reuters.com/article/us-usa-trump-fed/trump-calls-loco-federal-reserve-too-aggressive-fox-interview-idUSKCN1ML1TA) with interest rates.
Reed praised the president for his "disruptive style, a unique style."
"I appreciate that," Reed said.
"But I think what I'd focus on, and what people should focus on, is what policy do we have to worry about with the actions of the Fed?" he asked. "And the policy that I'm very concerned about is, how do they control inflation when they cannot raise interest rates like they have historically? And that is the problem because the Fed can't raise these interest rates that much higher without igniting a debt crisis going off, and they know it."
The market's sell-off coincides with another shake-up in the countryー the confirmation of Justice Brett Kavanaugh, who officially took his seat on the Supreme Court this week. After dramatic testimony from the Justice and one of his accusers, Prof. Christine Blasey Ford ー who alleged Kavanaugh assaulted her when the two were in high school ーan FBI investigation, and a tense 50-48 vote, Kavanaugh was sworn-in, still shrouded by controversy.
Reed said Kavanaugh will carry his existing history on the bench to his new role as Supreme Court Justice.
"The last few weeks, in my humble opinion, has been very sad for the entire country on both sides ー from Dr. Ford's perspective, from Brett Kavanaugh's perspective," Reed said. "To see now, in my opinion, the weaponization of sexual assault for political purposes, it's just a place I never thought we would go as a country."
This echoes Trump's [previous comments](https://www.cnn.com/2018/10/02/politics/trump-scary-time-for-young-men-metoo/index.html) expressing concern for men who might be falsely accused of assault in the future.
Reed added "the Kavanaugh situation" may have motivated voters who had previously planned to opt out of the midterms, potentially allowing Republicans to maintain their control of the House.
For full interview [click here](https://cheddar.com/videos/rep-reed-talks-trump-haley-kavanaugh-and-hurricane-michael).
Markets opened slightly higher to kick off the final trading week of the year as investors continue to watch the Omicron variant in the U.S. Sean O'Hara, President, Pacer ETFs joined Cheddar's Opening Bell to discuss what drove early market activity.
Carlo and Baker kick off the weirdest week of the year with all the news you missed over the holiday weekend, including calls for the CDC to shorten its isolation window as Omicron sweeps through the country.
Former professional tennis player Patrick McEnroe joined Cheddar to discuss the troubling issues surrounding player Peng Shuai who appeared potentially to have been silenced following her social media post accusing former Vice-Premier Zhang Gaoli of sexual assault. Shuai's subsequent disappearance, reappearance, and apparent retraction of the accusation in an interview only added to worries. "When this happened, all of us in the tennis community were very concerned. And, by the way, another thing Peng said in this interview was that she doesn't speak very good English," McEnroe noted. "Well I can assure you, she speaks darn good English, 'cause I spoke to her on many occasions over the last 15 years."
Universities like UCLA, Yale, and Duke have announced they're implementing remote learning amid the COVID omicron variant surge, despite President Biden recommending that K-12 schools should continue in-person education. Jared C. Bass, senior director for Higher Education at American Progress, joined Cheddar to break down what institutions of higher education might be considering differently. "I think some universities are allowing periods of a bit of a respite to allow students to get testing and make sure when they do return back to campus that they're healthy," he noted.
The S&P closed at a record at the major markets ended Thursday's session higher for a third straight day. Adam Coons, Portfolio Manager at Winthrop Capital Management, joins Cheddar News' Closing Bell, where he discusses what has investors feeling jolly before Christmas, and gifts investors with winning buying opportunities entering 2022.
The Supreme Court will hear arguments on President Joe Biden's vaccine mandates for large companies and health care workers on January 7, 2022. The mandates will remain in place until then.
Carlo and Baker cover the heartening news on the Covid front ahead of the holiday, plus President Biden punting student loan repayments again, a new space telescope and Love, Hate, Ate: Christmas Eve Eve Edition!
This year's worldwide semiconductor shortage limited the supply of everything from new cars to smartphones; and now, many in the chip industry expect the shortage to continue deep into 2022, and maybe even 2023. Semiconductor senior research analyst for Robert W. Baird & Co., Tristan Gerra, joins Cheddar News' Closing Bell to discuss.
