WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after the Federal Open Market Committee announced its decision to cut the benchmark rate by 25 basis points:

“President Trump’s tax and trade agenda are the policies we need to bring greater certainty to our economy and put America’s workers, families, farmers, and small businesses first. Americans are sick and tired of record-high interest rates that are the price they have been paying for the Biden-Harris Administration’s inflation crisis. Recent reports show the Biden Administration is leaving the American people with persistent, sticky inflation on their way out the door. That’s why President Trump has a mandate to swiftly act to rebuild the economy like he did in his first term.

“Ways and Means Tax Teams have been at work since April gearing up for next year’s Super Bowl of Tax. If Congress doesn’t act quickly to extend the Trump tax cuts, the outcome will be catastrophic. Every single American will face a tax hike and small businesses will face a tax rate more than 20 points higher than Communist China. In over 120 listening sessions in 20 states across the country, we have heard directly from Americans about how these potential tax hikes would impact their family, business, and community and how they need certainty now of what their taxes will be so they can plan, invest and grow. We are prepared to work with President Trump and enact his agenda as quickly as possible to provide relief to working families.”

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Key Background:

• Everything Costs More: Prices have increased 20.6 percent since the beginning of the Biden-Harris Administration.
• Americans Making Less: Real wages and benefits have fallen 3 percent since the beginning of the Biden-Harris Administration.
• Inflation Above Fed’s Target: For 45 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 97 Percent Higher: The monthly mortgage payment for a median priced new home has increased $1,100 and is 97 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 six calendar quarters. The number of Americans struggling to pay credit card bills has increased to levels not seen since the great financial crisis. More than 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. The average personal savings rate since President Biden and Vice President Harris took office is 3.0 percent lower than the pre-Biden-Harris average and it remains comparatively low at 4.4 percent today.
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.