“Every time that interest rates remain stuck at a 23-year high is more proof that ‘Bidenomics’ has been a financial disaster for America.”

WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the Federal Open Market Committee announced interest rates will remain stuck at a 23-year high: 

“Every time that interest rates remain stuck at a 23-year high is more proof that ‘Bidenomics’ has been a financial disaster for America. The Federal Reserve has made clear in previous public statements that they will not change rates unless they believe inflation is on a path toward the bank’s 2 percent target. The fact that the Federal Reserve is keeping rates at a 23-year high to fight ‘Bidenflation’ is putting the American Dream of providing for your family and your own home further out of reach. 

“Under the Trump tax cuts, which President Biden has already promised he would allow to expire, Americans enjoyed low prices, a strong economy, and more money in their pockets. Instead of helping families with the mess he made, President Biden’s tax hike would levy $7 trillion in new taxes and an average family of four making $75,000 would see their yearly tax bill increase by $1,500. Ways and Means Republican Tax Teams are hard at work to build on the successful Trump economic policies. We are partnering with the American people and asking for their input to support families, strengthen small businesses, and undo the damage done by President Biden.”

READ: Averting President Biden’s 2025 Tax Hike

Key Background: 

• The Federal Open Market Committee voted to keep interest rates at their current 23-year high. 
• To fight inflation caused by Democrats’ reckless spending, the Federal Reserve has raised interest rates 11 times under President Biden.
• Delayed Interest Rate Relief: Earlier this year, analysts expected the Federal Reserve could start cutting rates at today’s meeting and offer relief to workers and employers. Now, some analysts show interest rate cuts may not begin until the second half of this year, if at all.
• Doubled Mortgage Costs: The monthly mortgage payment for a median priced new home has increased by $1,171 and is 103 percent higher than when President Biden took office in January 2021.

“Bidenomics” Failures:

• Prices have increased 20.1 percent since President Biden took office.
• Real wages and benefits have fallen 3.9 percent since President Biden took office.
• Weak Economy: The economy continues to be weighed down by ‘Bidenomics,’ with the Bureau of Economic Analysis newly estimating the economy grew a sluggish 1.3 percent in the first quarter of 2024, a full three points lower than forecasted.
• Inflation Higher Than Wages: Inflation outpaced wages for 26 straight months of Biden’s presidency. 
• $1 Trillion+ Credit Card Debt: Credit card interest rates are at the highest level in more than three decades, while consumer credit debt has exceeded $1 trillion for the second calendar quarter and the number of Americans struggling to pay credit card bills has increased to the highest level in 12 years.
• Shrinking Savings: Thanks to higher prices, families have spent the entirety of their pandemic savings by 2024 and they are able to save less of their income. At 3.6 percent, the personal savings rate is near its historic lows. 
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.