Sen. Ernst slams ‘Bidenomics’ with ‘The Price is Up’ inflation game
Iowa Sen. Joni Ernst plays an inflation game on the Senate floor and slams ‘Bidenomics’ for rising prices.
Sen. Pat Toomey on Thursday took aim at the Federal Reserve’s shaky record on inflation during his opening statement at the Senate Banking Committee’s hearing with chairman Jerome Powell.
Toomey, a Republican from Pennsylvania and the ranking member of the Senate Banking Committee, reiterated his long-held belief that the Fed will be caught flatfooted in its ability to fight inflation if the recent surge in price is not temporary, like the central bank believes.
"Although the Fed assures us that this inflation is transitory, its inflation projections over the last year do not inspire confidence," said Toomey.
"Last June, the Fed projected that PCE—one standard measure of inflation—would be 1.6% for the 12 months ending 2021," he added.
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"Then in December, the Fed revised that figure up to 1.8%. And now the Fed’s most recent PCE forecast for 2021 year-end is 3.4%—more than double what the Fed thought inflation would be a year ago. But in coming months, the Fed is almost certain to revise that prediction upward—again—because so far this year PCE has risen by 6.1% on an annualized basis. For the rest of the year, inflation would need to be nearly zero for the Fed’s latest projection to be proven correct."