Joe Biden is about to satisfy Jay Powell for the primary time since his nomination to a second time period as chair of the Federal Reserve, highlighting the US president’s concern about excessive inflation and menace it’s posing to the restoration.
Based on the White Home, the US president and Powell will collect on Tuesday because the Fed and Biden administration battle rising client costs, provide chain disruptions, the vitality shock triggered by the conflict in Ukraine, and the enduring pandemic.
Biden selected to reappoint Powell for a brand new four-year stint as head of the Fed final yr, bucking progressive requires him to faucet a Democrat for the job quite than a Republican who was elevated to the helm of the central financial institution by former president Donald Trump. Powell was confirmed by the Senate for a second time period on Might 13, with robust bipartisan help.
A White Home official stated Biden would congratulate Powell “on his affirmation and the affirmation of the president’s different nominees to the Fed”.
The official added that the pair would “talk about the state of the American and world economic system, and talk about the president’s high financial precedence — addressing inflation to transition from an historic financial restoration to secure, regular development that works for working households”.
Unusually for a president in an election yr, with midterm elections due in November to find out management of Congress, Biden is supporting the Fed’s flip in direction of tighter financial coverage to combat inflation, underscoring simply how problematic excessive costs have gotten each economically and politically for the White Home and Democrats.
“Whereas I’ll by no means intrude with the Fed’s judgments, selections, or inform them what they must do . . . I consider that inflation is our high financial problem proper now, and I feel they do too,” Biden stated earlier this month.
“The Fed ought to do its job and it’ll do its job, I’m satisfied, with that in thoughts,” Biden stated.
Regardless that the Fed is an impartial establishment, US presidents have periodically held each private and non-private conferences with sitting chairs of the central financial institution.
Biden final met Powell in November, when he nominated him for a second time period as central financial institution chair. Trump met Powell and Janet Yellen, the Fed chairs throughout his tenure, and Barack Obama invited Yellen and Ben Bernanke, a former Fed chair, to the White Home throughout his presidency.
The assembly with Powell will give Biden an opportunity to show that the combat in opposition to inflation is his high precedence forward of the midterm elections, with polls exhibiting voters are rebuking his dealing with of the economic system due to hovering costs even whereas job development has been very robust.
The burden of excessive inflation, significantly with respect to petrol and meals prices, can have been much more obvious over the Memorial Day vacation, one of many busiest journey weekends of the yr.
Biden and high officers in his administration have insisted that they’re utilizing each software at their disposal to combat inflation, although they’re nonetheless debating whether or not to scale back tariffs on Chinese language imports with a view to scale back some value pressures.
Finally, nonetheless, they’ve more and more pointed to the Fed because the company with the best affect and duty for curbing inflation.