Biden's social spending spree may unleash bigger inflation wave: JEC Republicans

Democrats’ plans for trillions of dollars of spending on social programs could unleash more inflation at a time when prices are already accelerating at their fastest pace in 30 years, according to a new report from the Joint Economic Committee Republicans viewed exclusively by FOX Business.  

Since the coronavirus pandemic, Congress has authorized $6 trillion in new spending via the American Rescue Plan, the CARES Act and other legislation while the Federal Reserve has purchased $4 trillion in assets to stabilize the economy.

The stimulus money boosted income and spending above where it would have been otherwise, causing a rise in disposable income as the economy shrank.

"Inflation is rising at its fastest pace in three decades, and it’s gnawing away at Americans’ wages, savings, and aspirations," said Utah Sen. Mike Lee, a Republican and the ranking member of the Joint Economic Committee.