Biden considers it appropriate that the Fed recalibrate support for the economy

the president of U.S, Joe Biden, considered it appropriate that the president of the Federal Reserve (Fed), Jerome Powell, Recalibrate the support given to the economy during the pandemic.

“We are going to do fundamental work to ensure that high prices do not take root,” Biden said at a press conference on the first anniversary of his coming to power, which takes place this Thursday.

The president recalled that the Fed has offered “extraordinary support” over the last year and a half, but given the strength of the economy and the pace of recent price increases, it is “appropriate” for Powell to “recalibrate” that support.

In that sense, he stated that he respects the independence of the US central bank.

In parallel, Biden called on the United States Senate to confirm the five nominations he has presented to the Fed’s board of governors.

“Men and women with a variety of ideological perspectives who are eminently qualified, historically diverse, and who I have heard have the praise of both parties,” Biden said.

He added that the best way for prices to come down is for the economy to be more productive with a greater ability to deliver goods and services to Americans.

In that sense, he mentioned the measures adopted to unclog the supply chain and spoke of his social spending plan, which has few expectations of going ahead in Congress due to the very tight Democratic majority in the Senate, although he expressed confidence that part of that legislation goes ahead.

Likewise, Biden cited as another of his recipes for the recovery of the economy to increase competitiveness.

On January 11, Powell defended that the organization he directs must now prioritize the fight against inflation over the achievement of full employment, the two objectives assigned to the US central bank.

“There is no legal basis to prefer full employment to price stability or vice versa. They are equal. However, at different times one of them can go further off target and that’s where we need to focus a little more,” Powell explained in his speech before a US Senate committee.

In mid-December, the Fed confirmed that it is accelerating the reduction of its bond purchase program, the economic stimulus that it launched in the face of the crisis caused by COVID-19, and plans to eliminate it completely in March of next year.