Washington, D.C.—Today, Senator Martin Heinrich (D-NM), Chairman of the U.S. Congress Joint Economic Committee (JEC), released the following statement ahead of the Federal Reserve’s decision on whether to raise federal interest rates.
“Over the past two years, we have had record job growth, seen inflation fall, and passed federal legislation like the Inflation Reduction Act to help lower costs. This has helped stabilize our economy, but we can’t stop working for better. Recent economic turbulence and looming funding cliffs continue to make American families reasonably worried. As Chair of the Joint Economic Committee in Congress, I know one thing that can help: the Federal Reserve leaving interest rates right where they are.
“It has been widely speculated that the Federal Reserve will take the evidence at hand and decide not to raise interest rates today. That is the right decision, and I strongly believe they should make the same decision in their following meeting in early November. While I respect the independence of the Federal Reserve, I must caution that our economy – and the families I represent – can’t afford another rate hike.
“What Americans need right now is more economic stability, not less. Millions of Americans have already lost or are about to lose important federal supports, as pandemic-era funding and expansions begin to expire. Child Care Stabilization Grants that supported 220,000 childcare centers, 10 million childcare slots, and more than 650,000 childcare jobs will expire on September 30th. At the same time, millions of Americans are losing Medicaid coverage as states continue to unwind pandemic-era continuous coverage. We also have yet to see what the effect of the restart of federal student loan payments will have on the labor market and broader economy.
“These expiring supports present real headwinds to the economy, especially for low- and middle-income families. The Fed’s recent interest rate hikes do not help that – they just put things like stable housing further out of reach. In the two months since I wrote a letter to Fed Chair Jerome Powell urging caution with additional rate hikes, mortgage rates have gone over 7%, pushing the average mortgage payment on the typical home to a record high of more than $2,300 in August.
“I will continue to work with my colleagues in Congress and with the Biden administration towards policies that raise wages and keep prices down for New Mexicans and for all Americans. And I will continue to urge the Federal Open Market Committee and Fed Chair Jerome Powell to proceed with extreme caution when deciding whether to raise interest rates in the coming months.”
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About Chairman Martin Heinrich
U.S. Senator Martin Heinrich has served the people of New Mexico in the United States Senate since 2012. In addition to his role as Chairman of the U.S. Congress Joint Economic Committee, Heinrich also serves as Chairman of the Subcommittee on Agriculture, Rural Development, and Food and Drug Administration on the Senate Appropriations Committee, and as a member of the Senate Energy and Natural Resources Committee and the Senate Select Committee on Intelligence. Prior to his election to the U.S. Senate, Heinrich served two terms in the U.S. House of Representatives, four years as an Albuquerque City Councilor, as New Mexico’s Natural Resources Trustee, and in AmeriCorps with the U.S. Fish and Wildlife Service.
About the U.S. Congress Joint Economic Committee
The U.S. Congress Joint Economic Committee is Congress’s bicameral economic think tank. It was created when Congress passed the Employment Act of 1946. Under this Act, Congress established two advisory panels: the President's Council of Economic Advisers (CEA) and the JEC. Their primary tasks are to review economic conditions and to recommend improvements in economic policy. Chairmanship of the JEC alternates between the Senate and House every Congress.??
