Chairman Smith on Fed Rate Announcement: Inflation Rates Have Fallen to Pre-Biden Agenda Lows – So Should Interest Rates

"It's past time for the Federal Reserve to recognize the stable prices, steady job creation, and strong economic growth in the Trump economy and resume cutting interest rates."

WASHINGTON, D.C. - Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the Federal Open Market Committee announced it would not lower interest rates at the last meeting expected to be led by Chairman Jay Powell:

"It's disappointing - but not surprising - that in his final meeting leading the Fed, Chairman Powell kept interest rates elevated, blunting the impact of the pro-growth economic policies of President Trump, most notably the Working Families Tax Cuts. Chairman Powell's tenure at the head of the Federal Reserve will be remembered for acting too little, too late. Early in his tenure, he failed to recognize the danger of Joe Biden's 21 percent price spike that decimated household budgets and the economy and then overcorrected for his mistake even as President Trump successfully brought down prices and returned inflation to near a five-year low.

"Real wages have grown every month under President Trump and real wages for manufacturing workers have increased 1.5 percent, completely regaining the income these working-class families lost during the Biden presidency. It's past time for the Federal Reserve to recognize the stable prices, steady job creation, and strong economic growth in the Trump economy and resume cutting interest rates. I look forward to Chairman Kevin Warsh being confirmed as the next Federal Reserve Chairman. Mr. Warsh must act responsibly to provide more relief to workers, homeowners, small businesses, farmers, and manufacturers who are buying homes, making new investments, building new facilities, and hiring more workers thanks to the Working Families Tax Cuts."