Senate Homeland Security Committee Republicans want Treasury Secretary Janet Yellen to preserve and provide documentation on the department’s discussions and decision-making over the sharp spike in inflation.
In a letter sent to Yellen led by Sen. Rick Scott (R-FL), the Republican senators argued that the administration failed to heed the GOP’s warnings that large spending bills could lead to economic fallout that would be challenging to combat.
“We have repeatedly warned of the inflation crisis caused by exorbitant government spending and urged the Biden administration to act. Skyrocketing inflation is a steadily rising and harmful tax which is devastating American families,” said the letter, exclusively obtained by the Washington Examiner. “They deserve answers on what the Biden administration knew about the impending inflation crisis, how government spending would impact it, what coordination it has had with the Federal Reserve about inflation, and what plans it had, if any, to fix it.”
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The group pointed to reports from the Federal Reserve and economists stating that a sweeping $2 trillion COVID-19 relief package may have “injected too much government money into the economy,” which they argue played a significant role in the rapid rise in prices of consumer goods. Yellen recently acknowledged during an appearance on CNN that she miscalculated in 2021 when she projected that the odds that inflation would be a significant problem were low.
One senior GOP source said that the push for the agency to provide the requested information comes as Republicans feel confident in their odds of taking back the majority, with the party looking to make investigating the causes of inflation a top priority. Republicans need a net gain of one Senate seat to overturn the Democratic majority in the 50-50 chamber, where Vice President Kamala Harris casts tiebreaking votes.
With the consumer price index having risen 8.6% in May, a 40-year high, Republicans have repeatedly hit the Biden administration and Democratic lawmakers on their handling of the economy, alleging their policies have led to record-high gas prices and an uptick in grocery and housing prices, arguing that it will drive voters to the polls this fall.
President Joe Biden has argued that Russia’s war on Ukraine is the main driver of inflation, a claim that has been met with pushback from Federal Reserve Chairman Jerome Powell.
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The group demanded that the department “provide unredacted documents, records, and materials pertaining to the internal consideration of ARP since January 2021. Including emails, notes, memoranda, and text messages as well as any documentation in the possession of the U.S. Department of the Treasury relating to the Secretary’s and the administration’s discussions and plans to mitigate and prevent growing inflation, including all communication with the Federal Reserve, a detailed timeline of events and participants as well as any correspondence, reports, presentations, notes, or memorandum produced in preparation for, during, or as a result of these activities” no later than July 12.
In addition to Scott, who is head of the Senate GOP’s campaign arm, signatures on the letter include Republican Sens. Josh Hawley (R-MO), Ron Johnson (R-WI), James Lankford (R-OK), and Rand Paul (R-KY).
