Lafayette Reporter

Sen. John Kennedy (R-La.) addressed the Senate floor on Thursday, discussing the Federal Reserve's recent interest rate cuts, inflation, and the broader U.S. economy.

Kennedy highlighted the financial struggles many Americans face due to inflation. "Americans are struggling to pay their bills. The reason, of course, is inflation... those high prices, they were made in Washington, and they are a cancer on the American dream," he stated.

He noted that increasing consumer debt is forcing individuals to rely more heavily on credit cards. "I was looking at a report this week... people are having to borrow money to pay their bills, and they're having to borrow money on their credit cards."

Kennedy further explained that rising interest rates compound these difficulties. "The interest on credit cards has gone up dramatically as a result of inflation... Because of inflation, interest rates on those credit cards have gone through the roof."

According to Kennedy, consumer debt reached $17 trillion last year for the first time, with inflation-adjusted debt at its highest level since 2009.

Addressing recent reductions in inflation rates, Kennedy remarked: "Yes, it has [come down] and I want to thank the Federal Reserve for that because they had to do it alone. They sure didn't get help from Congress." He clarified that disinflation merely slows price increases rather than reducing prices outright.

Kennedy discussed potential solutions for reducing prices without triggering a recession. "There are only two ways to reduce these prices. One is to go into a recession... It's too big of a price to pay."

He concluded by urging his Senate colleagues to collaborate on strategies for economic growth beyond current levels. "We in the Senate are going to have to put our heads together and figure out how to grow this economy."