Biden tries to dispel fears that rising inflation will weaken the U.S. recovery
Joe Biden tried to alleviate people’s concerns that rising inflation may harm the US economic recovery and undermine his $4 trillion spending plan, saying that the government will remain vigilant against price increases and hope the Fed will take action when necessary.
In a speech at the White House on Monday, the President of the United States touted job creation and economic growth in his first six months in office, as pandemic restrictions were lifted and families benefited from large doses of fiscal stimulus.
But the latest rise Among the coronavirus cases, the spread of the Delta variable and higher-than-expected inflation data in recent months may jeopardize at least part of the economic rebound and cause political problems for the president.
Biden insisted that his senior officials still believe that current inflationary pressures will ease over time, but did not underestimate the risks that they will continue to exist.
“I want to be clear: My government understands that if we experience uncontrolled inflation for a long time, it will pose a real challenge to our economy. Therefore, although we believe this is not what we are seeing today, we will Be vigilant for any needed response.”
The president also said that he recently had a relationship with Jay PowellChairman of the Federal Reserve, and emphasized that it is very important for the central bank to effectively manage inflation.
“The Federal Reserve is independent,” Biden said. “It should take whatever steps it deems necessary to support a strong and lasting economic recovery.”
The President has been increasing pressure on Congress to approve $4 trillion in new spending on infrastructure and social safety nets, which will be deployed in the next ten years and paid for by imposing higher taxes on businesses .
But Republicans seized the opportunity of rising inflation and opposed the plan in Congress, saying that the United States Can’t afford Proposals for additional government spending that may stimulate the economy.
Biden fought back by arguing that his proposed investment and his most recent investment Executive order Promoting greater competition in the private sector-will help lower prices, thereby benefiting consumers in the long run.
“This will reduce stress,” he said.
In his speech, Biden compared the US economic path under his leadership with Donald Trump’s warnings of economic collapse during the 2020 campaign.
“It turns out that capitalism is still alive and very good. We are making significant progress to ensure that it works the way it should be: for the benefit of the American people,” Biden said.
He said that price increases in recent months are a natural by-product of the successful reopening of the world’s largest economy.
“As our economy recovers, we have seen some price increases. Some people have raised concerns that may be signs of continued inflation. But this is not our view,” Biden said.
“[The] The reality is that you can’t turn on the global economic lights without expecting this to happen. As demand recovers, global supply chains will face challenges. “