Biden lays out a plan to fight inflation
President Biden laid out a three-part plan on Tuesday to combat high inflation, which has put huge pressure on his job approval rating.
“We now have an opportunity to build on the historic recovery with an economy that works for working families. The most important thing we can do now to move from a rapid recovery to stable and steady growth is to lower inflation,” he said in an opinion piece in the Wall Street Journal before a meeting with Federal Reserve Chairman Jerome Powell. Later on Tuesday, “This is why I have made tackling inflation a top economic priority.”
The first part of his plan was an acknowledgment that the Fed “has a primary responsibility to control inflation.” Biden, without naming former President Trump directly, said his predecessor had “insulted the Federal Reserve” and argued that he would not.
The second part involved making goods more affordable for families with a focus on higher commodity prices. His administration blamed the Russian invasion of Ukraine for high gas prices, and Biden spoke of releasing global oil reserves and called on Congress to pass tax credits on clean energy.
Biden’s plan to make goods more affordable also includes overhauling supply chains, improving infrastructure, and “cracking down exorbitant fees charged by foreign shipping companies to move products.” He also promoted policies to make housing affordable and called on Congress to act to lower prescription drug prices and lower the cost of child and elderly care.
Biden’s meeting with Powell on Tuesday indicates that he has turned his attention to high inflation, including the rising cost of gas and other goods, that have plagued the president’s approval rating and pose a challenge to Democrats running in the upcoming midterm elections. The meeting is the first between Biden and Powell since November.
The third part of the president’s plan involved reducing the federal deficit through “reasonable reform of the tax code.”
We must reward the field of international taxation so that companies have no incentive to shift jobs and profits abroad. We must end the gross injustice in the tax code that allows billionaires to pay lower rates than teachers or firefighters.
Biden also noted that the Congressional Budget Office forecast the deficit would fall by $1.7 trillion this year, which would be the largest drop in history.
“With the right policies, the United States can move from recovery to stable and steady growth and lower inflation without giving up all these historical gains,” he said.
The president said he would welcome discussion of his three-part plan, and challenged Senator Rick Scott’s tax plan, which the White House has tied to congressional Republicans even though other lawmakers have either distanced themselves or refused. accept it.
“The economic policy choices we make today will determine whether a sustainable recovery that benefits all Americans is possible. I will work with anyone — Democrat, Republican, or Independent — who is willing to have an open and honest discussion that offers real solutions to the American people,” he said.
Biden also said that “growth will look different” during the transition to lower inflation, noting that there will be a decline in the number of jobs that create jobs. In addition, the president touted elements of the economy that have recovered since the COVID-19 pandemic, including lower unemployment, more US household savings and lower debt.
“The United States is in a better economic position than almost any other country,” he said.