Senate Minority Leader Mitch McConnell (R-KY) slammed Democrats for helping to stoke record-high inflation.
On Tuesday morning, the Department of Labor revealed that price levels have increased year-over-year by 5.4% — exceeding the 5.0% forecast from analysts surveyed by Dow Jones. Core inflation — which factors out food and energy costs — increased year-over-year by 4.5%.
As detailed by Fox Business, McConnell pointed to President Biden’s $1.9 trillion American Rescue Plan as a cause for the inflationary spike.
Sen. Mitch McConnell: "The country didn't elect a 50-50 Senate and a president who claimed to be a moderate so that Chairman Sanders could turn America into a socialist country." pic.twitter.com/uSmF7ynGoL
— The Hill (@thehill) July 13, 2021
“And now they want an even more absurd, even more damaging summer sequel?” McConnell asked about the Democrats’ budget reconciliation efforts. “What Democrats say they want to force through this summer through reconciliation would make our current inflationary mess look like small potatoes.”
McConnell asserted that Sen. Bernie Sanders (I-VT) is misreading the current mandate from voters.
“Our distinguished colleague, the junior senator from Vermont, the chair of the budget committee, has been very transparent about his socialist ideology for decades. Very upfront about it,” McConnell said. “But the country didn’t elect a 50-50 Senate and a president who claimed to be moderate so that chairman senators could turn America into a socialist country.”
Rising inflation in the United States is worrying consumers and business owners alike.
According to data released Monday by the Federal Reserve Bank of New York, consumers’ expectations for one-year inflation climbed to 4.8% — a 0.8% increase since last month and the highest levels since recording began in 2013.
Inflation has salient effects on Americans’ pocketbooks. For instance, a recent survey showed that parents foresee a 9% year-over-year increase in their back-to-school spending. Last year, they anticipated spending $247; this year, they anticipate $268. Meanwhile, gas prices have risen by 40% since January.
For American businesses, the Producer Price Index — which tracks changes in input prices for domestic producers — saw a 6.6% year-over-year increase. According to the Department of Labor, the hikes are the largest “since 12-month data were first calculated in November 2010.”
As McConnell noted, the American Rescue Plan is at least in part behind higher price levels. The Federal Reserve has also committed to aggressive quantitative easing through 2023 — which entails central bankers purchasing $120 billion in bonds per month, thereby drastically increasing the money supply.