A recently report from the Heritage Foundation found that the average American has lost nearly $4,200 in annual income since taking office Joe Biden came into office.

With rise inflation and higher interest rates, the average American workers lost about $3,000 in purchasing power annually.

Consumer prices have risen 12.7% since January 2021, faster than wages, which the conservative think tank says has led to a loss of individual purchasing power.

Additionally, higher interest rates have reduced the purchasing power of the average American by an additional $1,200 annually. The rate hikes have also increased the cost of borrowing for auto loans, credit cards and mortgages.

EJ Antoni, A research associate in regional economics at the Heritage Foundation’s Center for Data Analysis said Americans are $4,200 poorer today than when Biden took office.

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On the other hand, Antoni says under the donald trump Administration increased the average American’s annual earnings by $4,000.

“This financial disaster for American families is the direct result of a President and Congress addicted to spending our money combined with a Federal Reserve compliantly enabling this addiction by printing more dollars,” the researcher said.

Antoni has said Americans are taking on additional debt to cope with rising costs and interest rates to cope with the higher cost of living.

“Now the Fed is finally fighting inflation, which drives up interest rates and raises financing costs,” he noted. “Interest rates on all types of consumer debt are rising. For example, mortgage rates have doubled since Biden took office, sharply increasing Americans’ monthly payments.”

Last week the Federal Reserve hiked the benchmark index by 0.75% and indicated that it would continue to rise well above current levels.

The rise marks the Fed’s third 0.75% rate hike in four months as it continues to fight inflation.