Following two years of interest rate hikes by the Federal Reserve, and just one day before the central bank's meeting on Wednesday, Senators Elizabeth Warren and Sheldon Whitehouse, both climate alarmist Democrats, wrote a letter to Fed Chair Jerome Powell calling for an immediate halt to the interest rate hiking cycle to avert further collapse of the renewable infrastructure space.
In the letter, first obtained by Bloomberg, the senators warned that interest rate hikes have "completely tanked major renewable infrastructure projects across the country."
They said the tightening cycle had diminished the nation's ability to create green jobs and lower electricity costs that are critical to President Biden's Inflation Reduction Act.
"The Fed's interest rates have stalled progress and hampered the country's ability to combat the climate crisis," the letter said
struggling clean energy needs NIRP to survive? https://t.co/ZHNdmkJxsw
— zerohedge (@zerohedge) March 19, 2024
This comes as some of the most ambitious renewable power projects (including wind and solar) have been shelved, electric car sales slump, and clean energy stocks tank.
The iShares Global Clean Energy ETF, heavily invested in solar, wind, and hydrogen stocks, including SolarEdge, First Solar, Sunrun, Orsted, and Plug Power, has crashed 52% since peaking in January 2021.
Interest rate hikes threaten the Democrat's green energy bubble. The bad news for them is that higher rates for longer rates will cause more pain.
