The decades-long inflation rally was the focus of US President Joe Biden’s meeting today with Federal Reserve Governor Jerome Powell at the Oval Office, the first meeting between the two men since the confirmation of Powell’s appointment by the US Secretary of State. this month.
Shortly before the meeting, Biden said he was meeting with Powell and Treasury Secretary Janet Glenn to discuss “my top priority, tackling inflation.”
Biden said his plan to tackle inflation “begins with a simple proposition: respect the Fed, respect the Fed’s independence, something I have done and will continue to do.”
The chairman of the US Federal Reserve has made it clear in previous speeches that the Fed’s priority is to bring inflation under control after prices jump to a high of 40 years.
The Fed governor sees high inflation as the main economic risk facing the country and has pointed out that controlling inflation is the Fed’s top priority for its second term.
The Fed has already raised interest rates by 75 basis points in the last two policy sessions and is expected to raise two more, by 50 basis points. each time, in its next two meetings in the summer. Most Fed policymakers say they expect to continue raising interest rates until they reach about 2.5% by the end of this year and further if needed.
Source: Capital
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