WASHINGTON (Nexstar) — Due to pandemic related supply chain issues followed by rapid economic growth and demand, inflation remains at a 40-year high. On Tuesday, President Biden met with both Fed Chair Jerome Powell and Treasury Secretary Janet Yellen to discuss ways to combat the issue.
Biden said to properly address the high costs Americans are paying for nearly everything the Federal Reserve must remain independent.
“I know we’ll use those tools and monetary policies to address the rising prices for the American people,” the president said.
Powell has signaled another half-point interest rate hike is likely in June.
While staying hands-off with the Fed, President Biden wants to fight high prices by investing in clean energy to reduce the dependence on expensive oil and gas. Biden also wants Congress to enact policies to help Americans pay less for child care and prescription drugs.
But so far, President Biden has not been able to get Congress to make those policy goals a reality.
“This president has actually made historic progress with Congress in passing the American Rescue Plan, passing a bipartisan infrastructure bill — both of which have contributed to a historically strong economic recovery,” said Brian Deese, the director of the National Economic Council.
By the end of the year, Deese said, the Biden Administration will reduce the federal deficit by $1.7 trillion. It could be reduced even further by taxing the rich and corporations fairly.
“For example,” Deese said, “setting a minimum tax for all corporations to pay.”