Sen. Chuck Grassley (R-Iowa), former chairman and current senior member of the Senate Finance Committee, pressed Treasury Secretary Janet Yellen on the administration’s response to inflation, which has reached a four-decade high under President Biden.
Yellen’s testimony today comes after she recently admitted that she was “wrong” to refer to inflation as transitory – a claim that was often repeated last year by the Biden administration but drew frequent criticism from Grassley. Additionally, Yellen recently doubled down on her support for Biden’s reckless $2 trillion spending spree that was signed into law early last year.
“Iowans are paying the price for President Biden’s reckless policies, which have caused inflation to reach a 40-year high. It’s why concerns about soaring gas and grocery prices come up at every single one of my 99 county meetings,” Grassley said. “I’m glad Secretary Yellen indicated she opposes price controls and windfall profit taxes that far-left members of her party have advocated for. Such policies failed to address inflation in the 1970s and led to rampant shortages. However, I’m disappointed that the Biden administration continues to ignore the role excessive government spending played in fueling inflation. ”
Exactly one year ago today, Grassley delivered a speech on the Senate floor criticizing over-spending for fueling inflation. “Once inflation starts to run away, it’s difficult to stamp out,” Grassley warned. “The Fed would have no choice but to aggressively hike interest rates, which could then trigger a recession.”
Yellen told Grassley that “the Fed has to play a critical role” in fighting inflation, referring to the Federal Reserve’s plan to continue aggressively raising interest rates – a move that has sparked recession concerns.
To help bring down soaring gas prices, Grassley is spearheading an effort to pass the bipartisan No Oil Producing and Exporting Cartels (NOPEC) Act, which would empower the Department of Justice to sue oil-producing cartel members for antitrust violations. Grassley has also been outspoken about the need to restore U.S. energy independence, including by increasing the use of ethanol and biodiesel, restarting construction of the Keystone Pipeline and undoing Biden’s executive order that paused new oil and gas leases.