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Chairman Smith: Fed’s Inflation-Fighting Rate Hikes More Proof That ‘Bidenomics’ is Failing Americans

July 27, 2023

WASHINGTON, DC – The Federal Reserve continued its campaign to end the crisis of ever higher prices sparked by Washington Democrats’ $10 trillion spending agenda – announcing another increase in interest rates by 0.25 percent. The Fed has a 2 percent target for inflation. The last reading of its preferred measure, the Price Consumption Expenditures index, was almost twice the Fed’s stated target and core inflation was even higher, showing rising prices will continue to be a drag on the economy.

Chairman Jason Smith (MO-08) released the following statement in response to the Federal Reserve’s decision to increase interest rates:

“The White House may be trying to invent a victory lap on the economy, but the facts point to the pain of high prices continuing for families and small businesses. The Fed’s rate hike is more evidence that ‘Bidenomics’ has failed. What it did create for the American people was an economy where everything cost more, interest rates at the highest levels in 22 years, and the cloud of a looming recession that would devastate working families, if we aren’t already in one. Washington Democrats may have deluded themselves that spending $10 trillion hasn’t affected prices, and in turn, caused record interest rates, but the American people know better. For 26 straight months, paychecks couldn’t keep up with skyrocketing prices and high interest rates are turning the dream of owning a home into a fantasy for families.”

Key Background:

  • The Federal Reserve has raised interest rates 11 times since March 2022.
  • Interest rates are at their highest level in 22 years.
  • Prices have increased 16.6 percent since President Biden took office.
  • The average mortgage payment is $991 dollars and 84 percent higher per month than when President Biden took office.
  • Real wages have decreased 4.6 percent since President Biden took office.
  • Inflation has become so deeply ingrained in the economy that when removing food and energy the latest core inflation number of 4.8 percent is much higher than the topline figure.