Toomey Warns Federal Reserve of Inflation Risk
Washington, D.C. – U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) released the following statement on the heightened risk of inflation after the Producer Price Index rose 1 percent in March.
“The
March jump in the Producer Price Index is the latest troubling indication that
inflation is starting to pick up. Over the past year, we have also seen the
money supply (M2) increase by 27 percent (a post-World War II record) and
inflation expectations, commodity prices, many asset classes, and Treasury
yields have all risen sharply. And yet, despite the economy recovering, 2021
growth projections of over 6 percent and steady employment gains, the Federal
Reserve continues to keep interest rates at zero while purchasing almost $1.5
trillion worth of bonds annually. The Federal Reserve maintains that this bout
of inflation will be mild and temporary. It may be time for the central bank to
consider the alternative.”
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