House Republicans on the Budget Committee are blasting Democrats for seeking another $3.5 trillion even as the Government Accountability Office confirms that over $1 trillion earmarked for coronavirus relief remains unspent.
“Despite over $1 trillion in unspent federal funds sitting in accounts, Democrats are focused instead on how they can spend trillions more by reaching back into taxpayers’ pockets or adding more to the nation’s debt,” said the Budget Committee’s ranking GOP minority leader, Rep. Jason Smith, R-Mo.
Unspent amounts include $156 billion by the Department of Health and Human Services and another $210 billion that was allocated for state and local governments.
The money was left over from COVID relief packages passed prior to the $1.9 trillion pork barrel spending voted in by the Democrats in the spring of 2021.
Smith sounded the alarm that the extra cash injected into the economy could help fuel more inflation, which has already left taxpayers struggling.
“At the same time, the historic level of inflation our country is facing,” said Smith “fueled by the President’s misguided spending policies, amounts to a pay cut and a tax hike on every worker and family in America.”
The International Monetary Fund warned today that inflation, which some consider just temporary, could be more long lasting than hoped for and asked world central banks to be ready to hike interest rates to combat inflation.
Gas prices are up 45.1% compared to last under Biden’s inflation crisis. pic.twitter.com/6VFq40s5Gh
— House Budget GOP (@housebudgetGOP) July 26, 2021
“There is however a risk that transitory pressures could become more persistent and central banks may need to take preemptive action,” the IMF said according to CNBC.
Even if the ‘transitory’ rate of inflation begins to recede, goods and services in many sectors that were compelled to raise prices in order to adapt are less likely to lower them back to previous rates.
The IMF blamed the inflation on rising house prices and supply-chain disruptions that are more persistent than previously believed.
IMF Chief Economist Gita Gopinath said “inflation is expected to remain elevated into 2022 in some emerging market and developing economies, related in part to continued food price pressures and currency depreciations.”