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Inflation due to factors “out of our control” like “COVID relief”

On Wednesday’s show of Bloomberg’s “Balance of Power,” New Jersey Gov. Phil Murphy (D) said the Federal Reserve had “no choice but to be aggressive” in raising interest rates in order to control inflation and that inflation was caused by “factors beyond our control, be it COVID relief or war in Europe”, meaning the Fed needs to “do a Paul Volcker here and get out before that”.

Murphy said recent rate hikes by the Federal Reserve have pushed up government borrowing costs, “although we’ve been very opportunistic over the last five years to write off and pay down a lot of debt and a lot of debt. ‘debt avoidance. So that’s clearly – I’m much more concerned about the impact on someone’s kitchen table than I am currently on our balance sheet, and I don’t think the Fed has the These are factors beyond our control, whether it’s COVID relief or a war in Europe, there’s no choice but to be aggressive and do a Paul Volcker here and get out before that.

Murphy added that while he thinks the rate hikes are going to hurt, they have to be done and people are feeling “tremendous pain at that kitchen table, largely because of affordability.”

Follow Ian Hanchett on Twitter @IanHanchett


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