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Chairman Smith: Consequences of Democrat Spending Spree Spur Americans’ Suffering

May 03, 2023

WASHINGTON – Ways and Means Chairman Jason Smith (MO-08) released the following statement in response to the Federal Reserve’s announcement that it would increase interest rates by 25 basis points to combat inflation – bringing the total to 5.25 percent, the highest in 16 years:

“For the tenth time in just over a year, Democrats’ reckless spending has forced the Federal Reserve to hike interest rates to fight President Biden’s inflation crisis. This latest hike – to the highest rate in 16 years – further increases the chance of a recession and makes it more difficult for working- and middle-class Americans – already feeling the pain of higher prices at the store – to afford a home or a car. It will make it that much harder for small businesses – already struggling to compete in an economy where too many potential workers are sitting on the sidelines – to get a line of credit to keep their business operating. This is what happens when Democrats spend trillions of taxpayer dollars without any regard for the downstream economic effects on working families and small businesses.

“Even before this most recent rate hike, another U.S. bank failed just this week.  Americans are not living in the vibrant economy President Biden and Democrats tell themselves they’ve created. Americans are living in a reality hand crafted by failed Democrat policies of reckless spending and higher debt. President Biden should take this latest rate increase as a sign it’s past time to work with Republicans to get our nation’s fiscal house in order by reining in spending and strengthening the economy.”


The typical mortgage payment on a median-priced new home has increased by $1,069 per month – 91 percent more than when President Biden took office – – putting home ownership out of reach for millions of Americans:

Soaring Mortgage Costs December 2020 March 2023
Median Home Price $      358,700 $      436,800
20% Down Payment $        71,740 $      87,360
Mortgage $      286,960 $      349,440
Average Rate 2.77% 6.65%
Monthly Payment $     1,174.53 $      2,243.28
Increase: $1,068.75 or 91%


READ: Americans Are Worse Off Under President Biden

READ: House Republicans Pass Limit, Save, Grow Act to Rein in Wasteful Spending and Grow the Economy