U.S. President Joe Biden met with Federal Reserve Chairman Jerome Powell on Tuesday to discuss historic inflation, and Biden also assured the Fed that the independence of the Fed will not be affected. There will be political interference, which will give Ball room to fight inflation.
In addition, Treasury Secretary Janet Yellen admitted in an interview on Tuesday that her earlier view of the inflation path was wrong, that she did not fully understand the situation at the time, and that an unexpected shock followed that made the inflation situation worse. worse.
The meeting was Powell’s first meeting with Biden since his Senate confirmation, and was attended by White House chief economic adviser Brian Deese.
Before meeting with Powell, Biden re-emphasized that curbing inflation is the top domestic priority. He said in an op-ed in the Wall Street Journal (WSJ) a few days ago that the Fed bears the primary responsibility for controlling inflation.
Diess said following the meeting that the meeting was very constructive, and Biden expressed to Ball at the meeting what he has been emphasizing, that is, respect for the independence of the Federal Reserve.
Distin acknowledged that the U.S. economy will face a transition period as the Federal Reserve pushes to normalize interest rates and slow economic growth, but expressed optimism that the U.S. economy can cope with inflation without sacrificing jobs and growth.
“We finished the first round at a very fast pace, which puts us in a strong position relative to other central bank peers, but it’s a marathon and we have to move to steady and resilient growth,” he said.
The U.S. consumer price index (CPI) showed signs of slowing in April as gasoline prices fell from record highs, indicating that inflation may have peaked, but high inflation may continue for some time.
