“My biggest national priority”: Joe Biden again vowed on Tuesday to do everything to curb rising prices that are weighing on households and his popularity.
I want every American to know that I take inflation seriously.underlined the American president the day before the publication of inflation figures for the month of April.
Some root of inflation is not in my controlhe admitted, however, blaming the COVID-19 pandemic and the effects of the war on Ukraine, two major contributors […] nature is universal.
This is why we are witnessing historic inflation in countries around the worldhe insisted on pointing out that this was not a strange evil in the United States.
In March, 60% of inflation was due to rising pump prices, caused by the Russian-Ukrainian conflict, he also featured.
Economists expect lower inflation for April, after levels not seen since the early 1980s last month.
With the mid-term election approaching and suffering a moderate popularity rating, Joe Biden should reassure Americans who are unconvinced of his economic policy.
Republicans did not fail to recall that inflation began to climb even before the war in Ukraine.
If the president has no control over the war in Ukraine and the pandemic, he said he could act in other fields.
On Monday, he announced a drop in the prices of Internet subscriptions. There are things we can do, we can deal with what we need to do, starting with the Federal Reserve [Fed]which plays an important role in fighting inflation in our countryhe resumed on Tuesday.
That is why he urged the Senate to confirm without delay the appointments of highly qualified candidates he proposed running the Fed.
Joe Biden, however, was careful to point out that there was no question of interference in the institution’s decisions. They are independenthe assured.
Inflation in Fed views
The US central bank has already begun raising its key rates to slow consumption and investment.
And he must act quickly return policy rates to more normal levels this yearafter being the lowest during the pandemic to support the economy, New York branch president John Williams said at a conference in Germany of the Bundesbank and the National Association for Business Economics on Tuesday. .
That is, raise them to approximately 2% to 2.5%, against 0.75% to 1% currently. The Fed raised them by a quarter of a percentage point in mid-March, then by an additional half a point on May 4, the first turn of the screw of this magnitude since 2000.
The monetary institution has also announced that another half percentage point increase is on the table in the next two meetings, June 14-15 and July 26-27.
According to John Williams, the Fed has the right tools to achieve [ses] The objectives.
We have an advantage over previous inflationary stages: our monetary policy tools are particularly powerful in the very sectors where we see the greatest imbalances and signs of overheating, such as durable products and housing. .he estimates as well.
Customs duties on Chinese products being analyzed
On Tuesday, Joe Biden was also asked about the possibility of removing customs duties imposed by his predecessor Donald Trump on the equivalent of 350 billion Chinese products annually and could slow rising prices.
We are talking, no decision yet, said the White House host. These surcharges are due to expire on July 6, and Trade Representative services announced last week that they had launched a consultation to change or remove them.
Finally, asked about the duration of this inflationary pressure, Joe Biden quoted economists: most expect prices to moderate this year, others believe it may last until next year. .
I can’t predict ithe said, wanting to be cautious after long-standing claims that inflation is high in the meantime.
The path of inflation remains highly uncertain, admitted for her part Treasury Secretary Janet Yellen, during the Senate hearing. In addition to the pandemic, lockouts in China include problems in supply chains, he observed.
Source: Radio-Canada
