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Chairman Smith: High Interest Rates from “Bidenomics” Promises More Pain Ahead for Families and Small Businesses

November 01, 2023

WASHINGTON – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the October meeting of the Federal Open Market Committee:

“‘Bidenomics’ is such a disaster that the Federal Reserve has signaled it expects to keep interest rates elevated for the foreseeable future to combat the high prices on everything working families need to survive. Already, if a family is lucky enough to find a home, mortgage rates are at the highest levels in over 20 years. More Americans will struggle to pay the mounting credit card debt they’ve racked up dealing with President Biden’s cost of living crisis. Inflation remains far above the Federal Reserve’s target, meaning more pain is likely in store for families and small businesses from chronically high interest rates. With the cost of borrowing high, the federal government spent on average almost $2 billion per day in fiscal year 2023 on interest payments to creditors – a trajectory that leaves interest on our debt alone nearly as high as the nation’s defense budget. The responsibility for this mess lies directly with President Biden’s big spending agenda that has sent prices skyrocketing and forced the Fed to take action to combat the worst spike in prices in a generation.”

Key Background:

  • Prices have increased 17.7 percent since President Biden took office.
  • Real wages and benefits have fallen 3.9 percent since President Biden took office.
  • Since President Biden’s first month in office, Americans have faced 32 straight months of rising prices.
  • Inflation outpaced wages for 26 straight months of Biden’s presidency.
  • Mortgage rates are now the highest since November 2000. The average monthly mortgagepayment has increased by $1,275 and is 112 percent higher than when President Biden took office in January 2021.
  • Credit card interest rates are at the highest level in nearly three decades.
  • Net interest payments on the federal debt in Fiscal Year 2023 totaled $659 billion.

“Bidenomics” In Action