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).
State and county taxpayers will be asked to commit a record $850 million in public funds toward construction of the Buffalo Bills’ new stadium as part of a 30-year lease agreement.
As the war enters its second month, Russia may be changing course on its strategy in Ukraine. After suffering heavy losses, forces around the capital city of Kyiv appear to have stopped offensive operations and are now shifting their focus to taking over the south and east of the country. Terrell Starr, a foreign affairs reporter at The Atlantic Council, breaks down the latest from Kyiv. "Logistically this war has been a disaster. They have far more troops than [the] Ukrainian army has. What they don't have is good planning. The planning has been incredibly poor," he said.
Catching you up on what you Need to Know on Mar 28, 2022, with peace talks resuming in Ukraine as early as today, Colorado wildfires causing evacuations, Shanghai, China, ramping up restrictions once again, the Oscars debacle between Will Smith and Chris Rock, and more.
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