“Today’s inflation report confirms what the American people witnessed last night with their own two eyes: President Biden is incapable of stopping the runaway inflation train his policies caused.”

WASHINGTON, D.C. – House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure (PCE) index, showed inflation remaining above the Fed’s publicly stated target of 2 percent:

“Today’s inflation report confirms what the American people witnessed last night with their own two eyes: President Biden is incapable of stopping the runaway inflation train his policies caused. For 39 consecutive months, inflation has come in over three percent. Working Americans have seen a 20 percent rise in prices since Biden became President and have been forced to spend $17,000 more each year just to cover the necessities. Instead of helping these working families and small businesses, President Biden again bragged about his plans to end the Trump tax cuts, which would result in the largest tax hike in history on those same families and businesses already struggling to make ends meet. Americans cannot afford President Biden’s agenda.

“Under President Trump, the working class saw their taxes cut, more money in their pocket, and regular families could afford to buy a house. Ways and Means Republicans are working to build on the success of the Trump tax cuts and undo the economic damage done by President Biden’s failed leadership.” 

READ: Averting President Biden’s 2025 Tax Hike

Key Background

• 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 1.4 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.
• Historic Interest Rates: Under President Biden, interest rates hit their highest levels.
• Doubled Mortgage Costs: The monthly mortgage payment for a median priced new home has increased by $1,056 and is 93 percent higher than when President Biden 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 not able to save more of their income. The personal savings rate has dropped to 3.6 percent, far below its historic average of 8.5 percent.
• Families Falling Behind on Bills: Over one-third of families (37 percent) paid a late fee in the past year.