Taking into account the continued surge in prices and the strong recovery of the U.S. economy, President Biden, who has been in office for one year, said on Wednesday (19th) that the Fed’s readjustment of the monetary stimulus provided to the U.S. economy would be appropriate, apparently supporting the Fed’s imminent exit from easing policies direction.
“Given the strength of the economy and recent price gains… as Fed Chairman Powell said, a recalibration of monetary support now appears necessary,” Biden said at a news conference on his first anniversary.
“The important job of making sure that high prices don’t become more permanent rests with the Fed, which has a dual mandate: full employment and stable prices,” he said.
The remarks show that Biden supports the Fed’s policy direction of ending quantitative easing (QE), as well as Fed independence. Fed officials have said they will raise interest rates several times this year, likely starting in March, and may begin reducing the already $8 trillion rate cut soon.Dollarbalance sheet.
The latest CBS News poll shows that two-thirds of Americans believe that Biden is not doing enough to curb inflation. US consumer confidence fell to a near 10-year low in November.
U.S. consumer price inflation climbed to 7% in December, a nearly 40-year high. Biden said that what the White House and Congress can do to curb inflation is to solve supply chain bottlenecks and encourage competition among companies. And pass the “Build Back Better” (BBB) spending bill, which will reduce the cost of child care and other aspects of American families.
The Biden administration is still arguing that price gains will moderate later this year, with most of the upward pressure coming from the reopening of the economy and supply chain bottlenecks. In the case of businesses, the White House will increase competition in the meatpacking industry to curb the rise in meat prices.