Biden: "US Inflation Not Over Yet... Default Threat Must Be Removed"

U.S. President Joe Biden evaluated on the 31st (local time) that although the rapid rise in U.S. inflation is easing, the fight against inflation is not over yet.

He maintained a negative stance on 'reviving the economy' through tax cuts for large corporations and the wealthy, and criticized the Republican Party for refusing to agree to raise the federal government debt ceiling.

President Biden issued a statement immediately after the Commerce Department released the February Personal Consumption Expenditures (PCE) price index, saying, "Today's report shows that annual inflation has decreased by about 30% compared to last summer, supported by low unemployment and steady growth."

He added, "We are making progress in the fight against inflation," but also said, "The fight is not over, and the government is working to give families more breathing room."

The Commerce Department announced that the February PCE price index, a key inflation indicator, rose 5.9% compared to the same month last year and 0.3% compared to the previous month. The year-on-year increase marked the smallest rise in a year and a half, indicating that inflation, which seemed to be on the rise again in January, has slowed down.

President Joe Biden of the United States
[Photo by Yonhap News]

Meanwhile, President Biden emphasized investment from the bottom up while mentioning investment within the United States.

President Biden pointed out, "Now is not the time to return to trickle-down economics," and said, "We should not reduce America's manufacturing and other key programs that American families rely on to spend money on tax cuts for the wealthy, giant pharmaceutical companies, and oil companies."

He continued, "Our economy does not need the reckless threat of a chaotic default," and said, "Such threats must be eliminated."

President Biden has requested Congress to raise the federal government's debt ceiling, which has already been reached, but the Republican-controlled House is rejecting it. The U.S. government is concerned that if the increase is not made by early June, it could lead to an unprecedented default causing massive unemployment and other issues.

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