Biden Meets With Fed Chair Powell, Says Fighting Inflation Is ‘Top Economic Priority’

President Joe Biden met with Federal Reserve Chair Jerome Powell at the White House on Tuesday to discuss tackling historically high levels of inflation, while also reassuring the public that the economy remains strong.

At the meeting, President Biden and Fed chair Powell signaled the need to fight inflation, which is at 40-year highs and has led to rising recession fears among investors who have been battered by a brutal market selloff this year.

Brian Deese, director of the National Economic Council, said at a press conference following Biden that the President will give the central bank independence to tackle inflation.

The euro zone dismal inflation report earlier today shows that the Biden administration is committed to fighting inflation.

According to his recent op-ed in the Wall Street Journal, Biden declared fighting inflation a top economic priority prior to his discussion with Powell.

Despite gloomy outlooks on Wall Street about a possible recession, the U.S. economy is taking on inflation from a position of relative economic strength.

While the White House wouldn't comment on specifics of Fed policy, Biden agrees with the assessment that the Fed is making on inflation and has confidence in the people he has nominated.

PLAY Full Screen About Connatix 1/1 Skip Ad Continue watching after the ad Visit Advertiser websiteGO TO PAGE

The administration is confident that we can approach this challenge and focus our efforts on bringing inflation down without having to sacrifice economic growth because of the unique position of strength we are in, according to Deese. Giving the central bank the ability to operate is critical, particularly at a time when inflation cannot be taken for granted, which is why the President is reinforcing it publicly today.

Key Background:

The Federal Reserve raised interest rates by a half-percentage point in May, the most aggressive increase yet in the battle against surging consumer prices. The central bank is on pace for its most aggressive rate-hiking cycle in decades, with the recent release of minutes from the Fed's latest policy meeting indicating that most officials favor similar 0.50% interest rate hikes at upcoming meetings in June and July.

Experts think that high inflation could lead to a further selloff.

The market rebounded after the stock market lost seven weeks in a row.

The central bank will raise rates aggressively.

Bill Ackman says the Fed isn't fighting inflation.