U.S. Senate leaders joust over how to tame rising inflation
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[February 16, 2022]
By Richard Cowan
WASHINGTON (Reuters) -Raging inflation in
the United States took center-stage in the Senate on Tuesday, as
Democrats focused on legislative efforts to ease the problem and Senate
Republican Leader Mitch McConnell met with Federal Reserve Chair Jerome
Powell on the matter.
With public opinion polls highlighting Americans' discontent over rising
consumer prices for everything from groceries to gasoline, Senate
Democrats met in private to discuss an array of possible moves to
address inflation.
"You're going to see a lot of activity in March from us on that issue,"
Senate Majority Leader Chuck Schumer told reporters following a
closed-door meeting Democrats held to discuss possible legislative
fixes.
Meanwhile, Powell visited with McConnell in the Capitol for about 30
minutes in a meeting the Republican leader said would focus on inflation
and the U.S. economy. Powell declined to comment to reporters as he
exited. A McConnell aide had no comment on the meeting.
Schumer ticked off several pockets of the economy that could be targeted
in legislation, some of which already have been included as parts of
other pending Democratic bills.
He said those include lowering the cost of prescription drugs and foods,
easing a shortage of semiconductor chips that has contributed to higher
prices of automobiles and suspending a federal tax on gasoline.
![](http://archives.lincolndailynews.com/2022/Feb/16/images/ads/current/charrons_bch_2022.png)
Democrats said they were seeking bipartisan solutions, but it was not
clear which of the proposals under consideration could gain traction.
Congress can do "very little" about inflation in the short run,
University of California, Berkeley, economics professor Yuriy
Gorodnichenko said. Gas prices are driven more by market swings like
what might be precipitated by a Russia-Ukraine conflict than by the size
of a gas tax, he said in a phone interview.
"I'm not sure there's much Congress can do about it," he said, adding
that most Americans experience inflation across a broad spectrum of
items, from bread to cars to clothing, over which lawmakers have little
sway.
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![](../images/021622pics/news_m23.jpg)
U.S. Senate Minority Leader Mitch McConnell (R-KY) speaks to a
reporter outside his office at the U.S. Capitol in Washington, U.S.,
January 18, 2022. REUTERS/Elizabeth Frantz/File Photo
![](http://archives.lincolndailynews.com/2022/Feb/16/images/ads/current/napa_lda_FILTERSALE_2022.png) In a Senate split 50-50 between
Democrats and Republicans, broad consensus would be needed and
already there were red flags being raised to some of the ideas.
"They (oil companies) are experts in ... screwing consumers and in
corrupting Congress and in polluting our world. So, I want to be
very careful about what I give them," Democratic Senator Sheldon
Whitehouse told reporters when asked about legislation to suspend
the gasoline tax through the rest of 2022.
No. 2 Senate Republican John Thune, in a Senate speech, said doing
so would blow a "huge hole" in federal funds for maintaining and
upgrading highways.
Throughout Joe Biden's year-old presidency, McConnell and his fellow
Republicans have blasted Democrats for policies they say stoked
inflation.
Schumer countered on Tuesday, saying, "They (Republicans) just
attack" without offering remedies.
An inflation rate that hit a 40-year high in January is promising to
become a central issue in the midterm election campaigns for
Congress that will culminate with Nov. 8 elections. Republicans are
vying to regain control of the Senate and House of Representatives
where Democrats currently hold narrow majorities.
In the 12 months through January, the Consumer Price Index rose
7.5%.
Early suggestions by the Biden administration that inflation would
be fleeting appeared to have caught Democrats flat-footed, as they
now scramble to address it.
(Reporting by Richard Cowan, Ann Saphir, Makini Brice and Kat
Jackson; Editing by Chizu Nomiyama, Andrea Ricci and Jonathan Oatis)
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