The Impact of Skyrocketing Inflation 

The 40-year high inflation that we’re experiencing is a direct result of President Biden’s policies. By some measures, inflation for middle-class Americans may be higher than the 8.6 percent increase in the consumer price index indicates.

Recent data reported from the Commerce Department demonstrated that our economy, represented by gross domestic product (GDP) has contracted slightly faster than previously reported. Our economy shrunk 1.6 percent during the first quarter of this year. Generally speaking, an economy is in a recession when it experiences two consecutive quarters of contraction. While we await the economic data to determine if our economy is officially in recession, which some experts believe we may have already entered, we are struggling with high inflation.

The Federal Reserve Board (Fed), which manages our nation’s central banking system, fights inflation by controlling a benchmark interest rate known as the federal funds rate. If the Fed raises rates, borrowing for consumers becomes more expensive, thereby slowing economic growth with the hopes of easing inflationary pressures. This year, we’ve seen the Fed raise interest rates three times. Is it enough to control the 40-year high inflation we’re seeing? If history is the guide, likely not.


The chart above shows that the Fed has previously raised interest rates (in red) above the rate of inflation (in blue) before inflationary pressures eased. If that is true in the current case of our economy, the Fed has a long way to go. The Fed’s rates currently range between 1.5-1.75 percent. Current inflation is near 9 percent.

What the chart does not display, however, is the impact that rising interest rates will have on American families. Already struggling with the high costs of goods, larger purchases like automobiles or homes will be harder to afford. It will be harder for small businesses to expand. And our economy will slow down. All of this is a direct result of policies the Biden administration put in place. The American people are paying the price.

I recently spoke about the impact of the Fed raising interest rates on the floor of the House. You can watch my remarks by clicking below.

Joining Newsmax to Discuss Inflation

Last week, I joined Newsmax’s Wake Up America to discuss how Biden’s inflation is impacting our community and nation. It is not hard to see how inflation is making significant impacts on American families. A majority of Americans believe the federal government is hurting the middle-class. The amount of Americans living paycheck to paycheck has also risen in recent months. And more and more Americans are using savings to pay for everyday expenses.

Watch my interview with Newsmax below.

Internships in Washington and District Offices are available! 

My office is looking for interested students and individuals to apply for available internship opportunities in my Washington, DC and district offices. A qualified intern candidate will possess familiarity with the American political system and Congress, have an interest in current events and news, as well as demonstrate strong communication skills and work ethic.

For more information on our intern programs and to apply, please click here to visit my website.  

Around the District

Thanks to LGH Penn Medicine for a great visit to learn more about the awesome work being done to support and strengthen local families through the Nurse-Family Partnership program. I enjoyed hearing directly from families participating in the program to learn how it is helping them thrive.

Ethan Vaughn overcame personal tragedy in losing his brother to crime, and adversity by overcoming his injuries sustained in an automobile accident to be where he is today. Thanks for sharing your story with me Ethan, best wishes on your continued success!

It was great to meet New Freedom Borough Councilwoman Inga Andrews last week. Inga shared with me her story growing up as a child in wartime Germany during World War II and her thoughts on the many issues facing our nation.

Thanks to constituents representing #PA11 companies who are a part of the Pulp and Paperworkers’ Resource Council for stopping by my Washington office to discuss how federal policy impacts your industry!


Keystone Custom Decks has been family-operated for nearly fifty years! It was great to visit with their employees to learn about how inflation, supply chain issues and federal regulations are impacting their business. Thanks for a great visit!


Thanks to the local faith leaders and pastors from the Lancaster community for visiting my office to share in prayer and discuss critical issues facing our nation.

Here to Help

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If you have any questions or issues with a federal agency, please know that my office is here to assist you. You can call my district or Washington, DC offices for assistance or visit my website for any issue with a federal agency or department.

Stay Connected

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Sincerely,

Lloyd Smucker