Smucker Statement on Federal Reserve's Decision to Raise Interest Rates

WASHINGTON - Rep. Lloyd Smucker (PA-11), Vice Chair of the House Budget Committee, released the following statement after the Federal Reserve announced its decision to raise interest rates by one quarter point: 

"Chairman Warsh recently noted the strength and resilience of the American economy while acknowledging that inflation remains too high. I appreciate the Federal Reserve’s continued focus on restoring price stability while supporting a strong economy.

"But today’s decision also underscores a challenge monetary policy cannot solve on its own: our nation’s unsustainable fiscal trajectory. At more than $40 trillion, our national debt puts upward pressure on interest rates and increases borrowing costs throughout the economy. Those higher rates, in turn, make it more expensive for the federal government to service its debt, adding to deficits and requiring still more borrowing.

“Congress must do its part to break that cycle. Getting our fiscal house in order will help reduce pressure on interest rates, strengthen our economy and ensure more taxpayer dollars are available for our nation’s priorities rather than simply paying interest on past borrowing.”

# # #