- On Tuesday, President Joe Biden met with Federal Reserve Chairman Jerome Powell to discuss the administration’s strategy for combating high inflation, which Biden identified as his top domestic concern.
- Biden focused on the politically sensitive issue of high fuel prices, stating that Russia’s invasion of Ukraine is to blame.
- He also suggested that supply chains be fixed, infrastructure be invested in, prescription prices be negotiated lower, and daycare costs be reduced.
Dealing with a disastrous combination of soaring prices and low poll numbers, President Joe Biden launched a new three-part plan for combating inflation on Tuesday, setting off a month-long White House attempt to focus its public messaging on the status of the US economy. Biden met with Federal Reserve Chair Jerome Powell to talk about the record inflation that is emptying American wallets, while assuring Powell that he would be free of political meddling.
“The president reiterated to Chair Powell at the discussion what he has repeatedly stated, including today, that he respects the Federal Reserve’s independence,” White House National Economic Council Director Brian Deese said after the meeting, calling it “extremely positive.”
Biden stressed the central bank’s importance. “Respect for the Fed is at the heart of my plan to combat inflation,” he stated. “It is not only my role as President to designate highly qualified individuals for that institution, but it is also my job to provide them with the space they require to execute their jobs.” I’m not going to get in the way of their crucial work.”
Biden will discuss “the condition of the American and global economies, as well as the president’s top economic priority: combating inflation as we transition from a record economic rebound to stable, steady growth that works for working people,” according to the White House.
Biden’s discussion with Powell in the Oval Office comes as he battles a low support rating and Republican criticism, which accuses him of being at fault for the economy’s woes.
The President, on the other hand, has blamed rising gas and other essentials prices on the conflict in Ukraine and supply chain concerns.
Inflation has remained stubbornly persistent, and Biden has stated that it is now his top economic issue. His proposal to combat inflation is built on three pillars:
1. Recognize that the Federal Reserve is the key player and refrain from meddling with its operations.
2. Lower prices and increase the economy’s productive capacity.
3. Reduce the federal government’s fiscal deficit.
While a few sceptics praised Biden’s strategy, including former Obama economic adviser Jason Furman, who said it provided “sound suggestions on dealing with inflation,” others expressed doubts about its effectiveness, and some alleged the president of chastising others for the economy’s problems
CNN’s David Goldman commented, “He wants to shift responsibility and make it plain that the other guy is in command.”.
Biden’s stance to Powell stands in stark contrast with that of former President Donald Trump, who repeatedly chastised Powell for the Fed’s interest-rate choices and even threatened to dismiss him.
The meeting, which is the first between the two men since Powell’s Senate confirmation for a second term earlier this month, comes as inflation has reached 40-year highs due to rising fuel, food, and consumer goods costs.