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Brady: President Biden & Fed’s Inflation Denial Drove Likelihood of Recession Higher

May 11, 2022 — Blog    — In Case You Missed It...    — Press Releases    — Select Revenue Measures    — Work and Welfare   

President Biden is in denial that his own policies accelerated inflation, Republican Leader of the Ways and Means Committee Rep. Kevin Brady (R-TX) said in an interview with Joe Mathieu on “Bloomberg’s Sound On.”


With prices rising, real wages shrinking, and the economy in a wage-price spiral, President Biden is still proposing to heap on tax hikes that land on families and Main Street businesses


Rep. Brady warns, “Because both the White House and the Fed were in denial and dismissed [inflation] for all of last year, the likelihood of a recession that’s needed to break that inflation cycle is much higher.”


READ: Inflation Worse Than Expectations in April


CLICK HERE to listen.


Rep. Brady debunked President Biden’s claim that Republicans plan to raise taxes:


“The truth of the matter is, our tax plan is what you know: making permanent those lower tax rates for families and small businesses, doubling the child tax credit, making that permanent, and doubling the standard deduction. I’m surprised the President continues to make that claim because even the Washington Post fact checked him as false on that.”


Rep. Brady added that President Biden’s crippling tax hikes would drive inflation higher at the worst possible time:


“If he wants to talk taxes, first let’s talk inflation. That is a huge tax. This year the average family paid about $5,000 more to buy what they did the year before. It’s just crushing. 


“Secondly, he’s still trying to push for a trillion and a half tax hike on Main Street businesses that will drive inflation even higher. Other countries are lowering their taxes to deal with inflation, this President’s trying to heap more on Main Street businesses and families. Look, I don’t think he can escape his own Presidency at this point.”


On the rising risk of recession, Rep. Brady said:


“Because both the White House and the Fed were in denial and dismissed [inflation] for all of last year, now the likelihood of a recession that’s needed to break that inflation cycle is much higher. That delay has hurt the country in a big way. It’s going to be tough. Every wage-price spiral like we’re in today ends in a recession. It’s very painful. Which is why all of last year we were so frustrated and look, you’ve got to deal with these issues Mr. President. I think it’s very likely it ends up in a recession.”


Debunking President Biden’s claims that the main causes of inflation are the pandemic and war in Ukraine, Rep. Brady said:


“Yes, those factors do matter, but long before that was the President’s own nearly $2 trillion COVID stimulus. That fueled inflation. You can look at every graph and watch it just take off right then. 


“Secondly, his own policies – that $2 trillion stimulus bill paid a lot of Americans to stay home rather than reconnect to work, which is why we still have a worker crisis, which is driving inflation. 


“We don’t have the people to man the production line, to assemble products, deliver them, or even service them. These are his policies, and this is his inflation. And now I’m looking at my [Twitter] screen trending ‘Bidenflation’. This is a big issue for families.”


READ: Fact Check: Nine Misleading Claims in President Biden’s Inflation Denial


Democrats' policies largely contributed to inflation