WASHINGTON, DC –Raising the debt ceiling must come with spending cuts to combat the inflation that continues to hurt working-class families. 60 percent of Americans want an increase in the debt ceiling to reduce Washington’s wasteful spending – exactly what House Republicans’ Limit, Save, Grow Act delivered. As shown in the Personal Consumption Expenditure index release, further price spikes created by reckless spending puts pressure on the Federal Reserve to continue hiking interest rates, making it harder for families to buy a home, small businesses to expand, and the federal government to pay interest on our $31.8 trillion debt.
Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the Personal Consumption Expenditure index showed core inflation continues to increase:
“Inflation is far above the Federal Reserve’s target level; as a result, interest payments on our $31.8 trillion national debt have soared higher by over $100 billion so far this fiscal year. Interest rates to combat Biden’s inflation crisis are exacerbating the nation’s fiscal crisis.
“While President Biden wasted 97 days playing politics by refusing to negotiate over responsible spending reductions, House Republicans did our job and passed legislation to address the debt ceiling and limit wasteful spending, which every House Democrat voted against. If Senator Schumer had the votes to pass a blank check debt limit increase, he would have already done it. The reality is that time is running out to stop a default and the American people will not accept a debt limit increase without steps to also address reckless spending. President Biden must work in good faith with Speaker McCarthy to find a path that cuts wasteful government, saves taxpayers money, and grows the economy while raising the debt ceiling. The next few days will tell whether Washington Democrats are willing to put the financial security of working Americans and seniors first, and rein in the Washington spending spree.”
- Inflation has become so deeply ingrained in the economy that when removing food and energy this month’s core inflation number of 4.7 percent is even higher than the topline figure.
- Prices continued to rise month over month, further hurting families who have already lost $10,000 from historic inflation
- PCE, the Federal Reserve’s preferred rate of inflation, showed inflation remains above the central bank’s publicly stated target
- Total outlays for interest on the public debt were $460.3 billion for the first seven months of FY 2023 (through April), compared to $350.3 billion for the first seven months of FY 2022, an increase of $110 billion.