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U.S. President Joe Biden unveils plan to tackle the cost of living crisis
As the cost of living soars in America, U.S. President Joe Biden sits down with Federal Reserve Chair Jerome Powell to work out a plan
There’s no doubt about it, everyone is feeling the pinch of inflation right now. Whether it be the price of petrol, food, rent or mortgages. So when does it end?
Well, President Joe Biden met with Federal Reserve Chairman Jerome Powell as soaring inflation takes a bite out of Americans’ pockets but also out of the president’s public approval.
Biden and Powell spoke about the need to cool inflation from its highest levels in 40 years and endeavour to help Americans who are doing it tough.
This was the first meeting since Powell was confirmed for his second term by the Senate.
The meeting spoke about the critical transition ahead for the U.S. economy and the need for interest rate hikes in an attempt to slow inflation.
Many contributing issues were highlighted including the impacts of the war in Ukraine, supply chain crunches, and post-pandemic recovery.
President Biden also wrote an op-ed in the Wall Street Journal echoing these cumulative concerns that have led the economy to its present moment.
Just like other leading economies around the world, the United States Government poured trillions into an economic stimulus to keep the country afloat.
However, now it is feeling the brunt of economic downfall. Biden reiterated the independence of the Federal Reserve’s decisions moving forward.
“The president underscored to Chair Powell in the meeting what he has underscored consistently including today — that he respects the independence of the Federal Reserve.
We have run this first leg of the race at a very rapid clip that has put us in the strong position relative to our peers, but this is a marathon and we have to move and shift to stable resilient growth,”
White House economic adviser Brian Deese
For now, there is no immediate reprieve for consumers. The Federal Reserve has raised interest rates and plans to impose two more rate hikes in its next two meetings.
However, these ongoing economic hardships will be front of mind when American voters head to the polls for November’s midterms.
They’re not only hurting Americans’ back pocket but also damaging Biden’s approval rating.