US: President Biden vows to give the Fed a chance to fight inflation

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US President Joe Biden met with Fed Chairman Jerome Powell on Tuesday to discuss the historic rise in inflation that is pushing US households increasingly, assuring the head of the US Federal Reserve that he will have free political freedoms.

“The president told Mr Powell during the meeting that what he has repeatedly said consistently, as he does today – is that he respects the independence of the central bank,” said Brian Dizzy, chief executive of the White House. who described the meeting as “very constructive”.

Dizzy advocated a “transitional period” for the US economy as the Fed raises interest rates to reduce demand and ease inflationary pressures in the market, slowing growth.

“We ran in this first leg of the race at a very fast pace that put us in a strong position against others, but this is a marathon and we have to maneuver and move towards a more stable and resilient development,” Dizzy said. “We can tackle inflation without having to sacrifice all these gains (in the labor market),” he added.

Biden’s contacts with Powell are diametrically opposed to the approach taken by former US President Donald Trump, who systematically criticized the Fed chief for his interest rate decisions and even threatened to expel him.

The meeting, the first between the two men since the recent Senate ratification of Powell’s second term at the helm of the Fed, took place as rising prices for fuel, food and consumer goods pushed inflation to a 40-year high.

In a brief comment before the meeting, Joe Biden said that in his contacts with Fed Chairman Jerome Powell and Finance Minister Janet Glenn, he would discuss “his top priority”, which is “tackling inflation”.

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