Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Biden says inflation temporary; Fed should do what it deems necessary for recovery

Economic IndicatorsJul 19, 2021 02:51PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Customers visit Macy's flagship store in New York City, New York, U.S., May 20, 2021. REUTERS/Eduardo Munoz

By Steve Holland and Andrea Shalal

WASHINGTON (Reuters) -U.S. President Joe Biden on Monday said an increase in prices was expected to be temporary, but his administration understood that unchecked inflation over the longer term would pose a "real challenge" to the economy and would remain vigilant.

Biden said he told Federal Reserve Board Chair Jerome Powell recently that the Fed was independent and should take whatever steps it deems necessary to support a strong, durable recovery.

"As our economy comes roaring back, we've seen some price increases," Biden said, while rejecting concerns the recent increases could be a sign of persistent inflation.

He said his administration was doing all it could to address supply chain bottlenecks that had pushed up the price of cars, and noted that lumber prices were now easing after spiking higher early in the recovery.

"I want to be clear: my administration understands that were we ever to experience unchecked inflation in the long term, that would pose a real challenge for our economy," he said. "While we're confident that isn't what we're seeing today, we're going to remain vigilant about any response that is needed."

Biden said he had also made that point clear to Powell: "The Fed is independent. It should take whatever steps it deems necessary to support a strong, durable economic recovery."

Growing concerns about inflation dragged U.S. consumer sentiment in early July to its lowest level in five months, a survey showed Friday, after a 0.9% jump in consumer prices in June, the biggest increase in 13 years, but economists continue to believe that higher inflation is transitory.

The Democratic president said his plans to invest more in infrastructure, as well as better care for older people and children, would help reduce inflationary pressures in the future by boosting productivity.

"These steps will enhance our productivity, raising wages without raising prices," he said. "It will take the pressure off of inflation, give a boost to our workforce which leads to lower prices in the years ahead."

He said critics had warned repeatedly that his economic policies would lead to an end to capitalism, but economists were now predicting the United States would hit its highest economic growth rate in 40 years.

"It turns out capitalism is alive and very well," he said. "We're making serious progress to ensure that it works the way it's supposed to work for the good of the American people."

Biden says inflation temporary; Fed should do what it deems necessary for recovery
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (11)
peter neal
peter neal Jul 19, 2021 4:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He has severe Dementia and he has no concept of what he is doing.
James Pattison
James Pattison Jul 19, 2021 4:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Im surprised he didnt blame President Trump
James Pattison
James Pattison Jul 19, 2021 4:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How much hunter art do i need to buy to influence policy?
Casador Del Oso
Casador Del Oso Jul 19, 2021 3:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
who actually believes economic advice from joe?
Jack Hudson
Jack Hudson Jul 19, 2021 3:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden knows his policies are responsible for this. He's an incompetent *****
Haroon Ellahi Shaikh
Haroon Ellahi Shaikh Jul 19, 2021 3:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Guys do you think he’s getting ready to remove powel and place a new nominee? Language seems to be distancing the biden administration from the fed. Oh boy! Volatility is going to go through the roof.
Steven Roy
Steven Roy Jul 19, 2021 1:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
reckless monetary policies
Chris Sundo
Chris Sundo Jul 19, 2021 1:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
reckless reopening & gatherings policies
Chris Sundo
Chris Sundo Jul 19, 2021 1:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
reckless (undisciplined) population behaviour
Rodolfo Barraco
Rodolfo Barraco Jul 19, 2021 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US economy is not growing is bouncing. this is YoY comparison. real growth is 1-2% as always, rest is inflation. The cash subsidies by this goverment are turning USA into latin america. good luck finding workers willing to work. good luck balooning that deficit even further, keep the press printing money. We all have crypto, real state and gold, and are eager to get inflation to the moon, so our assets will go to mars.
Ivo Wagner
Ivo Wagner Jul 19, 2021 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Unless this time there can happen  a confidence crisis in the dollar. Then the scenario can rapidly change.
Rodolfo Barraco
Rodolfo Barraco Jul 19, 2021 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ivo Wagner  it already happend. dolar index was 105 1 year ago, now, even during panic mode the "safe heaven" mode dollar, cant go above 92... once it falls below 90 it will get nasty, poor people (democrates electorade) willl suffer the most... while people with money will invest in gold, real state and stocks and get even richer. this socialist agenda only makes poor even more poor, every single time
Roger Miller
Roger Miller Jul 19, 2021 1:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Even if it were temporary, it’s running higher than everyone, including the central planners, predicted. Sucks if you’re poor.
Felipe Daniel
Felipe Daniel Jul 19, 2021 12:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Democrats are about to push $3.5 trillion infractructure deal via reconciliation, meaning that they will force this legislation on the American people and give them more inflation. The $3.5 trillion plan is not infrastructure is just a way for Democrats to push things they know will not get votes to pass.
Stan Smith
Stan Smith Jul 19, 2021 12:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Infrastructure and Covid..great excuses to print the dollar into oblivion. Unfortunately they have no choice. MMT and Keynesian economics is a disaster but that will never be admitted
Stan Smith
Stan Smith Jul 19, 2021 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You mean the FED will be printing more money and creating even more inflation? I give these markets another month at most
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email