WASHINGTON, D.C. – Today, ahead of the Federal Open Market Committee (FOMC) meeting this week, Senator Scott released the following statement calling on Federal Reserve Chair Jay Powell to stop ignoring the harmful impacts of inflation on American families and lay out a clear plan to address the crisis created by President Biden and Democrats’ reckless spending. According to a survey conducted by the Federal Reserve Bank of New York, inflation expectations for the next year climbed for a seventh straight month in May to a record high.
Last week’s Consumer Price Index (CPI) data showed consumer prices increased 5% in May – a significant increase from the 4.2% increase reported for the 12-month period ending in April 2021 and the largest 12-month increase since 2008. Annualized, the monthly CPI growth rate reached 10% in May. CPI gasoline prices have seen a 56.2% increase over the last 12-months, up 6.6 percentage points from April’s CPI report.
Senator Rick Scott said, “For months, we’ve seen Chair Powell play down the threat of inflation as ‘transitory.’ With five consecutive months of price increases, that is clearly not the case. As inflation keeps pushing prices higher, families in Florida and across America are suffering – and it’s our poorest families, like mine growing up, that are hurt the most. American families deserve answers from Chair Powell. During this week’s FOMC meeting, he must clearly show how he plans address the threat our growing national debt poses to the U.S. economy and how the Federal Reserve is going to protect families and battle inflation caused by Democrats’ reckless spending.”
Last year, Senator Scott wrote to Chair Powell with his concerns about the growing size of the Federal Reserve’s balance sheet and ongoing purchases of U.S. Treasuries to finance U.S. federal deficits. Now, the Federal Reserve’s balance sheet has exceeded $8 trillion for the first time.
For more than a year, Senator Scott has been calling on Chair Powell to present a plan to address inflation:
- April 29, 2021: Sen. Rick Scott to Federal Reserve: With Economy Recovering, Stop Manipulating Market with Treasury & Bond Buys
- April 13, 2021: Sen. Rick Scott to Biden and Powell: Wake Up and Address Growing Inflation Now
- April 2, 2021: IN CASE YOU MISSED IT… Sen. Rick Scott in Washington Post: Where’s the anti-inflation plan, Mr. Powell?
- March 24, 2021: Sen. Rick Scott to Federal Reserve: What’s Your Plan to Address America’s Debt Crisis?
- March 17, 2021: Sen. Rick Scott: We’re Watching Federal Reserve & President Biden’s Response to Inflation
- March 4, 2021: Sen. Rick Scott to National Economic Council: What’s Biden’s Plan to Stop Inflation?
- February 23, 2021: Sen. Rick Scott: Fed Chairman Jay Powell Must Address Rising Inflation
- February 5, 2020: Sen. Rick Scott to Chairman Powell: Take Action to Roll Back Growing Size of Federal Reserve’s Balance Sheet