Republican Sen. John Kennedy of Louisiana turned up the heat on Federal Reserve Board Chair Jerome Powell over inflation and the state of the economy during a Senate hearing in Banking. “Look, Mr. Chairman, we got a hell of a mess here,” Kennedy told Powell during the hearing held by the Senate Committee on Banking, Housing, and Urban Affairs. “Inflation is hitting my people so hard they are coughing up bones.”
“President Biden, I don’t blame him, I understand politics, he keeps saying, well, your 401(k) has crashed, and gas has gone from $2 to $5 a gallon because the economy is so good,” Kennedy said. “The American people know that is not true.”
Powell admitted during the hearing that the Fed was trying to “slow down growth” to address inflation, prompting Kennedy to grill him about the possibility of increasing gas and diesel supplies. “You can also lower demand but you can increase supply, can you not?” Kennedy asked the Fed chair. “Yes,” Powell said, agreeing with Kennedy that increasing energy supplies could address inflation. Kennedy also pressed Powell on whether providing incentives for oil refineries to re-open would help alleviate supply issues before lambasting the Biden administration over the economy. “Well, in the long run, as Cain said, we’re all dead. I’m interested right now in the short run. What about if we reduce the regulatory burden, let’s say on refineries, wouldn’t that incent refineries to start refining more and help on the supply side?”
Sen. John Kennedy, a Republican from Louisiana, said inflation was hitting his constituents so hard they are “coughing up bones.” “We got a hell of a mess right now,” Kennedy said while pleading with Powell to act aggressively to fight inflation. “You’re the most powerful man in the United States, maybe in the world.” Powell replied, “I would say anything that could increase capacity on that front could — could have a –”
Kennedy continued :
Yeah, but would that help? I’m not trying to get you to endorse legislation. Look, Mr. Chairman, we got a hell of a mess here. Okay? We — inflation is hitting my people so hard, they’re coughing up bones. I don’t care what the inflation is in other parts of the — of the world. I’m sure they’re having inflation in other parts of the world. But them in misery doesn’t make my people feel better. They’re still miserable. Inflation is hitting people so hard, they’re coughing up bones. It’s the highest in 40 years. Our national — national debt is greater than our national output. Crime’s up, the border’s open, respect for institutions is way down.
And 70% of American people think we’re headed in the wrong direction. Now, we got a hell of a mess. And right now, you’re the most powerful man in the United States, maybe in the world. We’ve got to get — I mean, President Biden, I don’t blame him. I understand politics. He keeps saying, well, your 401-K has crashed and gas has gone from 2 bucks to 5 bucks a gallon because the economy’s so good.
And the American people know that’s not true. Now, other than relieving regulatory burden — well, let me put it in the form of question. What if the United States Congress said, look, we’ve got a budget. We’re going to freeze spending. We’re going to stop injecting more money into the economy. We’re going to freeze spending until Powell can get control on the demand side.
The Consumer Price Index rose 8.6% year-over-year in May, the Bureau of Labor Statistics reported. High energy prices have fueled inflation, causing landscaping companies to increase prices and also driving up food and health case costs.
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Kennedy presses Fed Chair on inflation, reduce regulatory burden, freeze spending until Powell can get control on demand side.