{"id":32012,"date":"2022-06-01T13:03:02","date_gmt":"2022-06-01T13:03:02","guid":{"rendered":"https:\/\/harchi90.com\/biden-vows-to-give-fed-chair-powell-space-to-fight-inflation\/"},"modified":"2022-06-01T13:03:02","modified_gmt":"2022-06-01T13:03:02","slug":"biden-vows-to-give-fed-chair-powell-space-to-fight-inflation","status":"publish","type":"post","link":"https:\/\/harchi90.com\/biden-vows-to-give-fed-chair-powell-space-to-fight-inflation\/","title":{"rendered":"Biden vows to give Fed Chair Powell &#8216;space&#8217; to fight inflation"},"content":{"rendered":"<div>\n<p data-testid=\"paragraph-0\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">May 31 (Reuters) &#8211; US President Joe Biden on Tuesday met with Federal Reserve Chair Jerome Powell to discuss historic inflation that&#8217;s draining American wallets, even as he assured the central bank chief he would have freedom from political interference.<\/p>\n<p data-testid=\"paragraph-1\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;The president underscored to Chair Powell in the meeting what he has underscored consistently including today &#8211; that he respects the independence of the Federal Reserve,&#8221; White House National Economic Council Director Brian Deese said after the meeting, calling it &#8220;very constructive.&#8221;<\/p>\n<p data-testid=\"paragraph-2\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Deese also nodded to the &#8220;transition&#8221; ahead for the US economy as the Fed lifts interest rates to more normal levels to dampen demand and ease price pressures, slowing growth in the process.<\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI article-body__inline-registration-prompt__1-N9W\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p data-testid=\"paragraph-3\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;We have run this first leg of the race at a very rapid clip that has put us in the strong position relative to our peers, but this is a marathon and we have to move and shift to stable resilient growth,&#8221; Deese said.  &#8220;We can actually take on inflation without having to sacrifice &#8230; all of those (labor market) gains.&#8221;<\/p>\n<p data-testid=\"paragraph-4\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Biden&#8217;s dealings with Powell stand in sharp contrast to former President Donald Trump&#8217;s approach, which involved routinely castigating Powell for the Fed&#8217;s interest-rate decisions and even threats to fire him.<\/p>\n<p data-testid=\"paragraph-5\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The meeting, the first between the two men since Powell&#8217;s confirmation for a second term by the Senate earlier this month, comes as rising gasoline, food and consumer goods prices have sent inflation to 40-year highs.<\/p>\n<p data-testid=\"paragraph-6\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">In brief remarks ahead of the meeting, Biden said he was meeting with Powell and US Treasury Secretary Janet Yellen to &#8220;discuss my top priority, and that is addressing inflation.&#8221;<\/p>\n<p data-testid=\"paragraph-7\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Stock indexes on Wall Street closed lower<\/p>\n<p data-testid=\"paragraph-8\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">NOT A TIME FOR NUANCES<\/p>\n<div class=\"article-body__element__2p5pI\" data-testid=\"gallery-0\" domain=\"https:\/\/www.reuters.com\" article_url=\"\/markets\/us\/biden-fed-chair-powell-discuss-inflation-crisis-tuesday-2022-05-31\/\">\n<div class=\"inline-gallery__detail__3ZG21\">\n<div class=\"caption__container__1o2DX inline-gallery__caption__1BuRa\">\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__white__3r45t text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__caption__3L8vY caption__text__GE-bd caption__collapsed__XIFyB\">US President Joe Biden meets with Federal Reserve Chair Jerome Powell and US Treasury Secretary Janet Yellen to talk about the economy in the Oval Office at the White House in Washington, DC, US, May 31, 2022. REUTERS \/ Leah Millis<\/p>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__ghost__1gV9w button__round__1nYLA text-button__container__3q3zX caption__readmore__V8B-O caption__collapsed__XIFyB\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Read More<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<\/div>\n<p data-testid=\"paragraph-9\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The US economy had its strongest growth in nearly four decades in 2021, after the government poured trillions of dollars in COVID-19 relief into the economy, and the Fed kept borrowing costs near zero.  The rescue efforts helped drive unemployment down to 3.6% from its pandemic-era high of 15%, but also revved up consumer spending that has contributed to higher prices.<\/p>\n<p data-testid=\"paragraph-10\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">A Labor Department report earlier this month showed unemployment rolls shrinking to the lowest level in 52 years, helping to drive wage growth.  read more <\/p>\n<p data-testid=\"paragraph-11\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The Fed hopes inflation will moderate on its own, as companies sort out supply chain issues complicated by the pandemic, for example, and consumers shift spending toward services.<\/p>\n<p data-testid=\"paragraph-12\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">But Powell has also made clear that the Fed is no longer counting on that, and will ratchet interest rates as high as needed.<\/p>\n<p data-testid=\"paragraph-13\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">He sees high inflation as the chief economic risk facing the country, and controlling it as the Fed&#8217;s top priority during his second term, even if the process proves painful to households and firms, and pushes the unemployment rate a bit higher.  read more <\/p>\n<p data-testid=\"paragraph-14\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The Fed has already raised interest rates by 3\/4 of a percentage point this year.  Most Fed policymakers say they expect to continue to raise rates until they reach around 2.5% by the end of this year, and further if needed.  The planned rate hikes will include a half percentage point increase at both their June and July meetings.<\/p>\n<p data-testid=\"paragraph-15\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">For Biden and the Democratic party that could mean a difficult midterm election season, where they are trying to maintain control of the Senate and House of Representatives.  Biden in June plans a media blitz to make the case to Americans that the economy is strong.  read more <\/p>\n<p data-testid=\"paragraph-16\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">US consumer price growth slowed in April as gasoline prices eased off record highs, suggesting that inflation has probably peaked, though it is likely to stay hot for a while and keep the Federal Reserve&#8217;s foot on the brakes to cool demand.<\/p>\n<p data-testid=\"paragraph-17\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Powell earlier this month said that despite some encouraging signs that price pressures may be peaking, the current environment is &#8220;not a time for tremendously nuanced readings of inflation,&#8221; and US central bank officials will keep tightening policy until inflation comes down in &#8220;a convincing way. &#8220;<\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__default__UPMUu sign-off__text__PU3Aj\">Reporting by Jeff Mason, Steve Holland, and Jarrett Renshaw;  Additional reporting by Trevor Hunnicutt and Ann Saphir;  Editing by Alison Williams, Heather Timmons, Mark Porter and Andrea Ricci<\/span><\/p>\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Our Standards: The Thomson Reuters Trust Principles.<\/p>\n<\/div>\n<p>    .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>May 31 (Reuters) &#8211; US President Joe Biden on Tuesday met with Federal Reserve Chair Jerome Powell to discuss historic inflation that&#8217;s draining American wallets, even as he assured the central bank chief he would have freedom from political interference. &#8220;The president underscored to Chair Powell in the meeting what he has underscored consistently including &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/biden-vows-to-give-fed-chair-powell-space-to-fight-inflation\/\"> <span class=\"screen-reader-text\">Biden vows to give Fed Chair Powell &#8216;space&#8217; to fight inflation<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":32013,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[56,73,24,30,508,507,1997,74,84,85,4007,510,37,258,265,41,509,735,1581,64,44,46,1817,5378,511,2537,285,75,57,8437,15657,2279],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.reuters.com\/resizer\/jIOirkhoxfbOxBpxrFlIqmFPyHo=\/1200x628\/smart\/filters:quality(80)\/cloudfront-us-east-2.images.arcpublishing.com\/reuters\/RGPFRO24CBO4LGLZYL4WRP6N5I.jpg?ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/www.reuters.com\/resizer\/jIOirkhoxfbOxBpxrFlIqmFPyHo=\/1200x628\/smart\/filters:quality(80)\/cloudfront-us-east-2.images.arcpublishing.com\/reuters\/RGPFRO24CBO4LGLZYL4WRP6N5I.jpg","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/32012"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=32012"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/32012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media\/32013"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=32012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=32012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=32012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}