“Regardless of what the Federal Reserve chooses to do with interest rates in the future, the Biden-Harris record is already one of high prices, high interest rates.”

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:

“Inflation is so bad that after an entire year of holding interest rates at the highest levels in 23 years, the Federal Reserve is still not confident enough that inflation is headed in the right direction. Regardless of what the Federal Reserve chooses to do with interest rates in the future, the Biden-Harris record is already one of high prices, high interest rates. President Biden, with Vice President Harris at his side, caused inflation to rise so high and so quickly that the Federal Reserve has had to raise rates to the highest level in a generation. Paychecks are worth less, homes cost more than ever, small businesses struggle to grow, and families have exhausted their saving accounts and maxed out credit cards to help make ends meet.

“While the failed Biden-Harris record has robbed families of the value of their paycheck, the Trump tax cuts raised real wages by five percent. Ways and Means Republicans know working families, farmers, and small businesses are what make America great. Our Tax Teams are hard at work, meeting with the American people, to find the best way to stop Vice President Harris’ proposed $7 trillion tax hike and build on the Trump tax cuts.”

READ: Averting President Biden’s 2025 Tax Hike

READ: Ways and Means Republicans Hit the Ground Running Ahead of 2025 Trump Tax Cut Expirations

Key Background:

• Everything Costs More: Prices have increased 20.1 percent since the beginning of the Biden-Harris Administration. 
• Americans Making Less: Real wages and benefits have fallen 3.6 percent since the beginning of the Biden-Harris Administration. 
• Inflation Above Fed’s Target: For 39 straight months, inflation has been above the Federal Reserve’s 2 percent target.
• Inflation Higher Than Wages: Inflation outpaced wages for 26 straight months under the Biden-Harris Administration.  
• Historic Interest Rates: Under the Biden-Harris Administration, interest rates hit their highest levels in 23 years.
• Nearly Doubled Mortgage Costs: The monthly mortgage payment for a median priced new home has increased by $1,038 and is 91 percent higher than when President Biden and Vice President Harris took office in January 2021.
• $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 3.4 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.