Soaring Inflation... Biden: "Temporary US Fuel Tax Exemption, Decision Possibly This Week"

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden confirmed on the 20th (local time) that he is considering a temporary suspension of the gasoline tax in response to soaring gasoline prices. A decision is expected as early as this week. He also drew a line regarding the recently spreading concerns about a recession, stating that it is not inevitable.

According to economic media CNBC and CNN, President Biden told reporters at Rehoboth Beach, Delaware, that a decision on whether to temporarily exempt the gasoline tax could be made by this weekend. In response to related questions, he said, "Yes, we are considering it," and added, "I hope to make a decision based on the data we review by this weekend."

This move comes amid mounting criticism of President Biden's responsibility due to the worst inflation in 41 years ahead of the November midterm elections. In particular, gasoline prices in the U.S. have surged from the $3 per gallon range just a year ago to around $5 recently. According to the American Automobile Association (AAA), the national average gasoline price in the U.S. was $4.981 per gallon as of this day. In California, the price was $6.398 per gallon.

However, a congressional action is required to temporarily exempt the gasoline tax, which is 18.3 cents per gallon. A White House official said, "The Republicans do not want gasoline prices to go down. They want President Biden to suffer," indicating that passing the measure through Congress would be difficult. The Biden administration is also reviewing gas rebate cards.

Additionally, Energy Secretary Jennifer Granholm is scheduled to meet with oil company executives around the 23rd. President Biden confirmed on this day that he will not attend this meeting in person.

President Biden also reiterated his stance that a recession is not inevitable, mentioning that he spoke with former U.S. Treasury Secretary Larry Summers. Former Secretary Summers, a Harvard University professor, was the one who raised concerns about the reality of high inflation in the U.S. since last year. Recently, he also warned that the U.S. could face a recession within one to two years.

Earlier, in an interview with the Associated Press, President Biden stated, "A recession is not inevitable. We are in a stronger position than any other country in the world to overcome inflation." At that time, he rebutted the blame surrounding inflation by saying, "If it were my fault, why do other major countries with higher inflation not have the same issue?" He also pointed fingers at Russia, which invaded Ukraine, and oil companies profiting from rising oil prices.

President Biden will visit Europe this weekend to attend the Group of Seven (G7) summit and the North Atlantic Treaty Organization (NATO) summit. He confirmed that he does not plan to visit Ukraine, which was invaded by Russia, during his European trip.

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