On Friday’s broadcast of CNBC’s “Squawk Box,” Sen. Bill Cassidy (R-LA) said the Biden administration has engaged in the same contradictory economic approach of engaging in a stimulatory fiscal policy through things like canceling student loan debt and the American Rescue Plan while, on the monetary policy side, the central bank is increasing interest rates in an effort to combat inflation that UK Prime Minister Liz Truss and the Bank of England have received widespread condemnation for taking.
Cassidy stated that the inflation issue is “two sides. It is supply side. Clearly, the high cost of fuel is driving up the cost of everything else, number one. But number two, people are criticizing Liz Truss and the Bank of England for simultaneously pursuing both a stimulatory policy and a let’s raise interest rate[s] policy. That’s what this administration’s done. … The Inflation Reduction Act, the canceling of student loans, the American [Rescue Plan] is a stimulatory policy working at direct odds to raising interest rates. And if you look at the American Rescue Plan, American real wages have fallen every month since. This is not an American rescue plan, this is an American hit job.”
Follow Ian Hanchett on Twitter @IanHanchett
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