# Chalmers under fire as Labor fractures over economy > Australia's treasurer faces internal party criticism and economic headwinds as inflation and interest rates bite, with some Labor MPs questioning government strategy. - Title: Chalmers under fire as Labor fractures over economy | Shortify - Summary: Australia's treasurer faces internal party criticism and economic headwinds as inflation and interest rates bite, with some Labor MPs questioning government… - Keywords: jim chalmers, anthony albanese, labor party, australian economy, inflation, interest rates, reserve bank of australia, ato credit card ban, budget, australian politics, news, politics - Source: the Guardian — https://theguardian.com/australia-news/2026/oct/17/jim-chalmers-anthony-albanese-labor-disunity-australia-politics - Published: 2026-10-16T14:00:15+00:00 - Read time: 3 min - Topics: jim chalmers, anthony albanese, labor party, australian economy, inflation, interest rates, reserve bank of australia, ato credit card ban, budget, australian politics, news, politics ## Chalmers in Bangkok as heat builds Treasurer Jim Chalmers was in Thailand meeting finance ministers and central bank governors during a thirteen hour visit as the International Monetary Fund warned the global economy could soon test the limits of resilience. ## Pressure mounts at home Back in Canberra, Chalmers faced criticism over stubborn inflation and rising interest rates. He was forced to deny being rolled by Anthony Albanese over a credit card payment ban by the tax office. ## Senior Labor figure warns of shift A senior Labor figure told Guardian Australia: the feeling of warmth that has existed for the government since the election is turning to heat. > The feeling of warmth that has existed for the government since the election is turning to heat. ## Budget battles and tax reform Labor managed a global energy shock from Donald Trump's Iran war and delivered the May budget a week after the Reserve Bank's third interest rate hike. ## RBA hits fifteen year high At the end of September, the Reserve Bank lifted rates to a fifteen year high. ## RBA governor blames domestic pressures Reserve Bank governor Michele Bullock says inflation has been driven by domestic capacity pressures, describing price rises from the Middle East war as coming in addition to homegrown challenges. ## MPs question government strategy Halfway through the parliamentary term, some in the Labor caucus are quietly questioning the government's political strategy. A Labor MP said they have heard from angry small business owners across their outer suburban electorate. ## Criticism of announcement approach Another Labor MP was more blunt, saying too much secrecy was attached to reform plans before the budget at the cost of proper consultation. > It seems like there is a mentality in the government of: announce things first and think through the details later. ## NSW right faction raises concerns Members of Labor's NSW right faction discussed the risk of alienating small business in a regular meeting at Parliament House. Attorney general Michelle Rowland and frontbenchers Kristy McBain and Andrew Charlton participated in the discussion. ## Coalition attacks Chalmers in parliament Opposition leader Angus Taylor and Coalition frontbenchers targeted Chalmers in question time, calling him hapless and suggesting Andrew Charlton is the de facto treasurer. Albanese said on Thursday he was very proud of Chalmers. ## Albanese stops credit card ban Albanese told an Australian Chamber of Commerce and Industry dinner in Canberra on Tuesday night that he moved to stop the credit card ban after lobbying from the chamber's chief Andrew McKellar, prompting suggestions he… ## Factional tensions over leadership A senior Labor source said media reports about a split missed the mark, suggesting left faction members were trying to weaken possible right faction leadership contenders including Chalmers and Tony Burke to benefit Mark Butler. ## Economist assesses Chalmers' record Economist Saul Eslake says Chalmers has got some things right and some things wrong. Until this year's budget he was pretty good at persuading the public he made good decisions but has been fairly hesitant… ## Chalmers acknowledges criticism On Wednesday morning after a major speech, Chalmers said he took seriously the criticism of him and the government. > When you do a senior job in a government which is governing in difficult times, there will always be a range of views. ## More economic pain ahead December's mid year budget update will include spending cuts to offset higher debt repayments caused by conditions in international bond markets. ## Key takeaway Treasurer Jim Chalmers faces mounting criticism from within Labor as stubborn inflation and rising interest rates create tough economic conditions, with some MPs questioning the government's political strategy.