US White House Urges OPEC+ to Increase Production Amid Persistent High Inflation Concerns

National Security Advisor: "Critical Time for Economic Recovery
Oil-Producing Countries Must Contribute More to Economic Recovery"
Inflation Situation Unfavorable for Next Year's Election... Unprecedented Statement
Biden: "FTC Must Respond to Gasoline Price Increase"

Calls for Early Tapering Increase Within Fed
Kansas City Fed President: "Should Announce in September"

July Consumer Prices Rise 5.4%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] As the high inflation situation in the U.S. continues, the White House has unusually demanded additional oil production from the Organization of the Petroleum Exporting Countries Plus (OPEC+). Federal Reserve (Fed) officials once again emphasized the normalization of monetary policy.

According to the Wall Street Journal (WSJ), on the 11th (local time), Jake Sullivan, the White House National Security Advisor, issued a statement evaluating OPEC's production increase plan as "insufficient considering the critical timing for the global economic recovery." He emphasized, "High oil prices will negatively impact economic recovery," and "OPEC+ oil-producing countries need to contribute more to the economic recovery."

Foreign media regarded the White House's statement demanding increased production from oil-producing countries as very unusual. This statement is seen as reflecting the Biden administration's stance to ease inflationary pressures.

On the same day, President Joe Biden emphasized that active measures are being taken to block the rise in inflation. Citing the July CPI, President Biden said that inflation growth has slowed and stated, "We are taking measures to address gasoline prices." He added, "The National Economic Council (NEC) has requested the Federal Trade Commission (FTC) to use all tools to respond to illegal activities that drive up gasoline prices."

President Biden also said he believes the Fed will take all necessary measures to curb inflation. The New York Times analyzed that Biden's remarks reflect concerns that if inflation rises further, it will be difficult to win the midterm elections next year.

On the same day, voices within the Fed continued to call for early tapering (reduction of asset purchases).

Esther George, President of the Kansas City Fed, said, "As the economic recovery is underway, it is time to return the accommodative monetary policy to neutral." Robert Kaplan, President of the Dallas Fed, demanded that tapering be announced in September and implemented in October. This week, Raphael Bostic, President of the Atlanta Fed, and Eric Rosengren, President of the Boston Fed, also called for early tapering.

On the same day, the U.S. Department of Labor announced that the Consumer Price Index (CPI) for July rose 5.4% compared to the same period last year.

This content was produced with the assistance of AI translation services.