The president of United States, Joe Biden, said Wednesday that it was appropriate for the Federal Reserve to recalibrate the support it provides to the US economy, in light of rising prices and the pace of the recovery.
“Given the strength of our economy and recent price increases, it is appropriate, as … the president of the Fed (Jerome) Powell, recalibrate the support that is now needed,” Biden said at a news conference.
“The critical job of making sure high prices don’t take hold falls to the Federal Reserve, which has a dual mandate: full employment and stable prices,” the president added.
With inflation rising at its fastest rate in almost 40 years, authorities in the Fed they have signaled that they will raise interest rates several times this year, likely starting in March, with an $8 trillion balance sheet drawdown by the Fed starting soon.
At his renomination hearing this month, Powell told lawmakers he would not allow inflation to “take root” and said a tighter monetary policy stance was needed to keep the economy growing.
Biden also asked the Senate to confirm his recent nominations for key roles on the Federal Reserve Board “without further delay.”