The U.S. Federal Reserve has raised interest rates by one-half a percentage point and signaled it may continue lifting rates through the first half of next year. On Wednesday, Fed Chair Jerome Powell said the higher cost of borrowing would slow the economy and lower the rate of inflation.

Jerome Powell: “We’re taking forceful steps to moderate demand so that it comes into better alignment with supply. Our overarching focus is using our tools to bring inflation back down to our 2% goal and to keep longer-term inflation expectations well anchored. Reducing inflation is likely to require a sustained period of below-trend growth and some softening of labor market conditions.”

Former Labor Secretary Robert Reich said the Fed’s move risked plunging the U.S. economy into recession and throwing millions of people out of work. He noted U.S. prices have outpaced wage gains over the last year, diminishing the real purchasing power of workers. Reich added, “This is absolutely not the time for more interest rate hikes that make it even harder for working people to keep the lights on.”