Biden Calls EMERGENCY Meeting With Federal Reserve
(NewsReady.com) – Right now, inflation is the highest it’s been in 40 years. Supply chain disruptions, multiple pandemic stimulus bills over the last three years, the rising cost of fuel, and manufacturing shortages have all contributed to the crisis. To get a handle on the situation, President Joe Biden met with the Federal Reserve chairman.
On May 31, Biden and Chairman Jerome Powell sat down for a discussion about the state of the US economy. The president and Fed chair both want to slow inflation without pushing the country into a recession, a major concern for banks recently. Biden said the first part of his plan is to “respect the Fed, respect the Fed’s independence.”
WATCH LIVE: President Biden meets with Federal Reserve Chair Jerome Powell. https://t.co/kJRp5DLqW9
— Yahoo News (@YahooNews) May 31, 2022
For its part, the Fed has increased interest rates and will continue to do so over the summer in order to slow the economy and, hopefully, bring down inflation.
Treasury Secretary Janet Yellen was also at the meeting with the president and fed chair. She also appeared on CNN’s Wolf Blitzer’s show to admit she was wrong about inflation; the host asked her about her comments in 2021 about inflation posing a “small risk.”
.@SecYellen on inflation being transitory: "I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy […] that I, at the time, didn't fully understand." https://t.co/AlrXn4kT0r pic.twitter.com/9tqxo0iA3B
— The Hill (@thehill) June 1, 2022
Moving forward, the administration and Powell will need to be aligned if there’s any chance of getting inflation under control without destroying the economy. Whether they will be successful remains to be seen.
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