Chairman Smith: “Americans aren’t just looking for relief from high interest rates, they’re looking for relief from the same old failed Biden-Harris policies that crushed them to begin with.”

WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the Federal Open Market Committee announced its latest decision on interest rates: 

“Nearly three years after the Biden-Harris Administration took over the White House and triggered the worst inflation of the last 50 years, the Federal Reserve is finally lowering interest rates even though prices are still 20 percent higher, paychecks are worth less, and more families are taking on credit card debt. Americans aren’t just looking for relief from high interest rates, they’re looking for relief from the same old failed Biden-Harris policies that crushed them to begin with.

“It’s bad enough that President Biden and Vice President Harris are taking credit for success at a time when the personal savings rate is at a historic low. Why on earth is Vice President Harris now threatening a $7 trillion tax hike on 100 percent of Americans, especially on working families and small businesses struggling to make ends meet? Why is she making empty promises that she will provide some relief later when she is in office right now? 

“Ways and Means Republicans have held over 90 Tax Team events and traveled to and listened to Americans in 17 states so far. To a person, these Americans want us to build on the success of the Trump tax cuts, which led to more jobs, higher wages, and a stronger economy, so they can get back on track to achieving the American Dream.”

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Key Background: 

• Everything Costs More: Prices have increased 20.3 percent since the beginning of the Biden-Harris Administration. 
• Americans Making Less: Real wages and benefits have fallen 3.4 percent since the beginning of the Biden-Harris Administration.
• Inflation Above Fed’s Target: For 42 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.
• Mortgage Costs 86 Percent Higher: The monthly mortgage payment for a median priced new home has increased $972 and is 86 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 their highest levels in more than three decades, while consumer credit debt has exceeded $1 trillion for five calendar quarters. The number of Americans struggling to pay credit card bills has increased to the highest level since March 2012. Nearly 11 percent of credit card balances are more than 90 days past due.
• 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 2.9 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.
• Washington Has A Spending Problem: After the Trump tax cuts, federal revenue as a share of GDP averaged 17.2 percent, near the average since FY2000. Since the start of the Biden-Harris Administration, federal spending as a share of GDP has exploded to 26.5 percent, more than 6 percentage points higher than the average from FY2000 to the pandemic.