November 02, 2022

Smith: Fed Rate Hikes Are Chronic Symptom of Democrat Economic Disaster

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 pace in 40 years – raising interest rates by another 75 basis points, the sixth such increase since March, for a total increase of 3.75 percent:
“Today’s interest rate increase, the sixth since March, is a chronic symptom of the economic disaster that continues to unfold under one-party Democrat rule in Washington. After almost two years of President Biden and Democrats in charge, the cost of living in America continues to rise. Democrats’ $10 trillion record spending spree kicked off the highest inflation in 40 years, forcing interest rates to go up, and putting the American Dream out of reach for millions of families. Americans deserve an economy that works for them, not against them, and when Republicans earn back the majority in Congress, we will build a strong economy that delivers for working families, increases wages, gets people back into the workforce, and makes it easier for families to put food on their table and gas in their car.”

- House Budget Committee Republican Leader Jason Smith (MO-08)
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 another 75 basis points today – the sixth rate increase since March.
  • In total, the federal funds rate has risen by 3.75 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
  • Inflation is at a forty-year high of 8.2 percent.
  • Inflation has increased 13.9 percent since President Biden took office.
  • Real wages have decreased 4.4 percent since President Biden took office.
  • Gas prices have risen 111 percent at their peak since President Biden took office.
  • Average mortgage payment is 48 percent higher than one year ago.

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