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Chairman Smith: Biden’s Failed Economic Policies Forcing Fed to Choose Between Chronic Inflation or Risk of Recession

June 15, 2023

WASHINGTON, D.C. – Despite prices continuing to rise and inflation having increased 15.5 percent since President Biden took office, the Federal Reserve has been backed into a corner by the Biden Administration’s failed economic policies and forced to choose between pausing interest rate hikes or moving forward with another increase, which would further squeeze our weakened economy and risk recession.

Chairman Smith released the following statement in response to the Federal Reserve’s decision to pause interest rate hikes:

“President Biden’s reckless actions have put the Federal Reserve between a rock and hard place. The Fed is having to choose between hiking interest rates to combat the inflation crisis caused by reckless Democrat spending, risking the health of our overall economy, or pausing those rate hikes and hoping prices do not continue to spiral out of control. Even with a pause in interest rate increases, Americans are already paying more to get a loan or afford a mortgage while the inflation crisis continues to rob them of their hard-earned dollars.

“Ways and Means Republicans passed legislation this week that would keep more money in the pockets of working families and alleviate the pain of the Biden Inflation Crisis, and yet every single Democrat member of the committee opposed the bill. Working Americans cannot afford to wait for out-of-touch liberals in Washington to come to their senses and recognize the pain their reckless policies have inflicted on millions of families nationwide. House Republicans will continue to deliver real solutions that improve the lives of families struggling to make ends meet.”

Key Background:

  • The Federal Reserve has raised interest rates 10 times since March 2022.
  • Interest rates in the last year have increased more than in the previous 15 years combined.
  • Prices have increased 15.5 percent since President Biden took office.
  • The average monthly mortgage payment is $1,101 dollars and 94 percent higher than when President Biden took office.
  • Real wages have decreased 3.2 percent since President Biden took office.
  • Inflation has become so deeply ingrained in the economy that when removing food and energy this month’s core inflation number of 5.3 percent is even higher than the topline figure.