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Economy
31 May 2022
Biden Highlighted Inflation Role of Fed Ahead of Powell Meeting on Tuesday
The Index Today
U.S President Joe Biden said that the Federal Reserve has a primary responsibility to control inflation and vowed not to seek "to influence its decisions inappropriately" ahead of a meeting with the central bank chief on Tuesday.
the White House said late on Sunday that Biden will meet Federal Reserve Chair Jerome Powell to discuss the state of American and global economy.
In a Wall Street Journal opinion piece published Monday, Biden said the Federal Reserve's main role was to control inflation.
He said he agreed with the Fed's assessment "that fighting inflation is our top economic challenge right now."
Biden added the U.S. government should "take every practical step to make things more affordable for families during this moment of economic uncertainty."
Reuters reported that the Fed is under pressure to decisively make a dent in an inflation rate that is running more than three times its 2% goal and has caused a jump in the cost of living for Americans. It faces a difficult task in dampening demand in the economy enough to curb inflation while not causing a recession.
the Commerce Department reported on Friday that there are already signs inflation has peaked. In the 12 months through April, the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation, advanced 6.3% after jumping 6.6% in March.
©Photo: AFP-JIJI
