April 09, 2021

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.”