WASHINGTON – US Vice President Joe Biden pledged to "bring inflation under control" as American voters grew increasingly negative about the economy and questioned his capacity to address supply chain difficulties and price hikes. According to reports, the President approved the central bank's decision to reduce monetary stimulus and combat inflation on Wednesday.
"Covid-19 has generated a lot of economic issues, including significant price hikes throughout the global economy," Biden stated at a White House press conference marking his first year in office. "The Federal Reserve, which has a twin purpose of full employment and stable pricing," Biden added, "plays a crucial role in ensuring that the elevated prices do not become entrenched." "Given the strength of our economy and the rate of recent price increases, it's time, as... Fed Chairman (Jerome) Powell has suggested, to recalibrate the support that is now necessary," Trump said, adding that he respects the central bank's independence.
As it departs the ultra-loose monetary policy implemented at the onset of the crisis, the Fed is on schedule to complete its asset purchase programme in mid-March. According to Fed employees' median interest rate estimates given in mid-December, the central bank could raise rates three times this year, up from just one hike predicted in September.