Biden Meets Powell: "Discussed Inflation Response... Respect Fed Independence"

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Seulgina Cho] "My plan to address inflation starts from the fundamental respect for the independence of the Federal Reserve (Fed)."

On the 31st (local time), U.S. President Joe Biden made this statement ahead of his meeting with Fed Chair Jerome Powell at the White House, emphasizing that the inflation issue, which has reached the highest level in 40 years, is his top priority.

He explained the reason for the meeting, saying, "Today, we will discuss ways to address inflation in order to turn this historic economic recovery into stable economic growth that can benefit every American household." This meeting is the first since President Biden announced Powell’s reappointment last November.

President Biden said, "The Fed has two responsibilities: full employment and price stability. The Fed Chair and members are very focused on resolving inflation and will use monetary policy and other tools to address rising prices."

Brian Deese, White House economic advisor, briefed that President Biden also emphasized during the meeting that the Fed will be given the space to act to solve the inflation problem.

Before the meeting with Chair Powell, President Biden contributed an article to the Wall Street Journal (WSJ) highlighting his response stance, including ▲ prioritizing inflation control by the Fed ▲ easing living costs through supply chain recovery ▲ reducing deficits through tax reform to alleviate price burdens. Seemingly aware of concerns that the White House might be trying to influence the Fed, he drew a clear line, saying, "My predecessor (former President Donald Trump) disparaged the Fed and inappropriately tried to influence Fed decisions during a high-inflation era, but I will not do that."

Local media are analyzing this meeting as a full-scale response to the inflation issue. The U.S. consumer price inflation rate continues to remain in the worst 8% range in 40 years. In particular, with the midterm elections coming up in November, President Biden’s approval ratings have recently plummeted to their lowest level amid growing responsibility debates over inflation in the U.S.

The Fed has been raising the benchmark interest rate since March. Following May, the meetings in June and July are also expected to consider so-called big steps, raising rates by 0.5 percentage points at a time.

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