December 14, 2022

Biden’s Latest Christmas Gift: Another Interest Rate Hike

WASHINGTON, D.C. – House Budget Committee Republican Leader Jason Smith (MO-08) released the following statement after the Federal Reserve continued its interest rate increases at the fastest rate in 40 years – raising interest rates by another 50 basis points, for a total increase of 4.25 percent, the seventh since March:
“Today’s interest rate hike is President Biden’s latest Christmas gift to Americans. Family budgets this holiday season are already being stretched to their breaking point because of the inflation crisis fueled by Democrats’ reckless spending habits. The 40-year high spike in prices is draining Americans’ savings and forcing families to pay for presents, gas, and groceries with their credit cards, which are growing more expensive to maintain because of rising interest rates. President Biden’s inflation crisis – and the resulting interest rate hikes – has also turned the American Dream of owning a home into an unaffordable nightmare for so many Americans.

“This pain from inflation and interest rates was not inevitable. When President Biden took office, the Congressional Budget Office predicted interest rates would not increase until 2024. Democrats’ $10 trillion spending spree forced the Fed to raise rates to combat inflation, putting Americans’ financial security and the fiscal health of the nation further in jeopardy. This week, the Treasury Department announced that interest payments on the national debt totaled $103 billion over just the past two months – an increase of 87 percent over the same two months last year. Meanwhile, Washington Democrats are currently attempting to pass trillions in new spending in the lame duck Congress that will only throw more fuel on the inflation fire.

“Democrats’ fiscal insanity dug America into this hole. Republican fiscal sanity can help dig us out and get the economy back on solid ground. House Republicans’ Commitment to America is to build a strong economy that can battle inflation while helping working class Americans see higher paychecks and greater financial security.”

- House Budget Committee Republican Leader Smith

The Consequences of Democrat Spending The highest spike in prices coupled with the fastest increase in interest rates in 40 years.
  • To combat the President’s inflation crisis, the Federal Reserve raised interest rates by 50 basis points today – the seventh rate increase since March.
  • In total, the federal funds rate has risen by 4.25 percent, the fastest rate hike in 40 years and larger than the last 15 years combined.
  • When President Biden took office, the Congressional Budget Office predicted interest rates would not increase until 2024.
  • Interest payments on the federal debt reached $103 billion over the months of October and November – an 87 percent increase over the same period last year.
  • Inflation is at a forty-year high of 7.1 percent.
  • Inflation has increased 14.3 percent since President Biden took office.
  • Real wages have decreased 3.8 percent since President Biden took office.
  • Average mortgage payment is 38 percent higher than one year ago.