NEW YORK, NEW YORK - JUNE 14: Traders work on the floor of the New York Stock Exchange (NYSE) on June 14, 2022 in New York City. The Dow was up in morning trading following a drop on Monday of over 800 points, which sent the market into bear territory as fears of a possible recession loom. (Photo by Spencer Platt/Getty Images)
Fitch is predicting a US recession in the spring. Here's what that means for you
04:42 - Source: CNN
New York CNN Business  — 

Colorado Sen. John Hickenlooper is pleading with the Federal Reserve to pause its relentless attack on crushing inflation before it does more harm than good.

“High inflation necessitates a response. But the concern is the Fed is doing too much too soon,” Hickenlooper wrote in a letter on Thursday to Fed Chairman Jerome Powell. “We should wait to see the effects on the economy and how those changes are absorbed.”

The letter, shared first with CNN, is the latest effort by Senate Democrats to persuade the central bank to stop slamming the brakes on the economy. Hickenlooper notes that interest rate hikes are the Fed’s “bluntest tool” and officials have already “wielded that hammer repeatedly.”

“Raising rates now when prices may come down would be foolish and damaging to American consumers and small businesses,” Hickenlooper wrote, adding that the Fed’s actions so far have “failed” to knock inflation down.

In a bid to get inflation under control, the Fed has raised interest rates more rapidly than at any point since the early 1980s under legendary Fed chairman Paul Volcker. The central bank is widely expected to deliver another massive rate hike next week.

Noting that Fed policy hits the economy with a significant lag, Hickenlooper argues it would be “prudent” for the Fed to take a beat and evaluate how these historic efforts to fight inflation are impacting the economy.

“I write to urge the Federal Reserve to pause and seriously consider the negative consequences of again raising interest rates,” Hickenlooper wrote, adding that families have been stung by surging borrowing costs for homes and cars.

The letter comes just days after Ohio Democratic Sen. Sherrod Brown, chairman of the Senate Banking Committee, warned Powell not to overdo his war on inflation. The caution from Brown is notable because Brown voted in favor of Powell’s second term leading the Fed.

Hickenlooper conceded that curbing high inflation is “paramount” but stressed that some causes of price spikes — i