Ways and Means Committee cites tax cuts as U.S. inflation holds steady, GDP growth tops forecast
New U.S. economic data for March and the first quarter point to steady inflation and stronger-than-expected output growth. The update comes as House Republicans argue that tax policy is supporting household income, consumer purchasing power and broader economic momentum.
Highlights
- March core Personal Consumption Expenditure inflation rose 0.3% as forecast, while first-quarter 2026 GDP growth preliminarily reached 2%, outperforming the CBO’s 0.6% estimate.
- Initial jobless claims fell to their lowest level since the 1960s and tax refunds rose by over 11%, signaling robust labor market and household liquidity.
- Chairman Jason Smith credits working families tax cuts for real wage gains and notes blue-collar workers recovered buying power lost in the Biden-era inflation surge.
March inflation and first-quarter growth data
As reported by the House Committee on Ways and Means, Chairman Jason Smith said the latest Personal Consumption Expenditure price index for March shows core inflation rising 0.3%, in line with projections, while a preliminary estimate puts first-quarter 2026 GDP growth at 2%. That compares with a Congressional Budget Office projection of 0.6% real GDP growth.Smith says personal income is increasing at the fastest pace in nearly a year, while price increases for most items remain flat in March. He also points to initial jobless claims falling to their lowest level since the 1960s and to tax refunds rising by more than 11%.
Republican policy message and household impact
In his statement, Smith attributes the latest economic readings to what he describes as pro-growth Working Families Tax Cuts backed by President Donald Trump and Republicans in Congress. He says Americans are seeing real wage gains each month under Trump, and that blue-collar manufacturing workers have fully recovered the buying power lost during the Biden-era inflation surge.Smith also says inflation remains near a five-year low and that prices for items including eggs, dairy, and used cars and trucks are below their levels of Jan. 20, 2025. He adds that first-quarter growth marks a return to stronger expansion after fourth-quarter activity was affected by what he describes as the longest government shutdown in U.S. history.
Our earlier report on March 2026 PCE inflation data highlighted how the figures intensified the political fight over household expenses. Senator Elizabeth Warren argued that families were paying more for essentials such as food, transportation, and health care, while gasoline prices climbed to a four-year high, adding pressure to the debate over tariffs, energy, and broader economic policy.
Latest Government News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
