Senator Elizabeth Warren urged Federal Reserve Chair Jerome Powell to cut interest rates, saying the hikes have “completely tanked major renewable infrastructure projects across the country.” In a letter, Warren of Massachusetts, and fellow Democratic Senator Sheldon Whitehouse of Rhode Island said rate increases have jeopardised the ability to create clean energy jobs and lower electricity costs that are part of President Joe Biden’s Inflation Reduction Act.
Clean energy executives, including Tesla Chief Executive Officer Elon Musk, have blamed higher interest rates for sluggish sales of their products ranging from electric cars to solar panels. The rooftop solar industry, for example, has been hit hard by higher rates that have made it more expensive for consumers to finance panels and battery systems for their homes.