Inflation on the menu of a Biden meeting with the Fed boss

The 79-year-old Democrat discussed his “biggest priority: addressing inflation to successfully move from a recovering economy to sustained” and sustainable growth with Mr. Powell and Ms. Yellen in the Oval Office.

Joe Biden said in a brief press statement that the central bankers were completely concentrated in price control which, along with support for employment, is their mission.

Jerome Powell did not speak to reporters, and the Fed, which was contacted by the AFP, did not want to provide further details.

Treasury Secretary Janet Yellen, for her part, acknowledged at the end of the day that she did not expect the strength of this price increase in 2021: I was wrong, then, on the path that inflation will takehe told CNN.

We need to fight inflation […] [et] keep the progress made in the labor marketshe pointed out.

However, there are no longer record numbers in terms of job gains and economic growth, which are tied to economic recovery, he warns: We expect steady and stable growth and lower inflation.

The meeting was unusual, as the Biden administration generally distanced itself from the Fed, an independent institution.

But the White House host assured him plan to control prices started with a simple premise: respect the Fed, respect the freedom of the Fed.

A snub at his predecessor Donald Trump, whom he accused, in a column published Monday by wall street journalthe market reference every day, to have underestimated the Fed.

The former Republican president regularly attacks the Fed in general, and Jerome Powell in particular, who is his candidate to lead the powerful central bank, and Joe Biden has chosen to keep in his position.

The U.S. Senate confirmed Jerome Powell for a second term on May 12, by 80 votes to 19.

The Fed has assured that it will do everything to bring inflation back within acceptable limits.

It has already started to raise its core rates drastically, and should continue.

This has also had the effect of increasing the rates charged to borrowers – businesses and individuals – by commercial banks. This weakens demand and, ultimately, prices.

An election issue

Inflation was a godsend for the Republican opposition, months before the midterm legislative elections that Democrats threatened to damage their very small majority in both Houses of Congress.

Regardless of what Biden and the Democrats say, the economy continues to decline under their watch as families struggle to buy anything from gas to food.Republican National Committee (RNC) chairman Ronna McDaniel commented Tuesday.

The phenomenon of rising prices, fueled by the war in Ukraine and also bears marks of the sometimes chaotic recovery of economic activity after the COVID-19 pandemic, is global.

The inflation rate in the euro zone broke a new record in May, at 8.1% for a year, according to statistics published on Tuesday.

For all the central banks in the world, the equation is tricky: prices must calm without interfering with growth and causing unemployment to rise.

In the United States, economists expect the emerging U.S. economy, which Joe Biden is proud of at every opportunity, to slow sharply by the end of the year.

Experts are also closely monitoring the behavior of American households. The latter are now drawing on their savings to sustain consumption, supporting the world’s largest economy, even today.