On Tuesday, President Biden laid out a three-part plan to tackle high inflation, which has weighed heavily on his job approval ratings.
“We now have an opportunity to take advantage of a working-family-friendly economy and build on a historic recovery. The most important thing we can do now to move from a rapid recovery to steady, steady growth is to reduce inflation. That’s why I Make addressing inflation my top economic priority,” he said in a statement. Wall Street Journal Column one in advance Meeting Meeting with Fed Chairman Jerome Powell later on Tuesday.
The first part of his plan is to acknowledge that the Fed “has the primary responsibility for controlling inflation.” Biden, who did not directly name former President Trump, said his predecessor “disparaged the Fed” and argued that he would not.
The second part deals with making goods more affordable for households focused on high oil prices. His administration has blamed the Russian invasion of Ukraine for high oil prices, Biden touted the release of global oil reserves and called on Congress to pass the clean energy tax credit.
Biden’s plan to make goods more affordable also includes repairing supply chains, improving infrastructure, and “fighting the exorbitant fees foreign shipping companies charge to ship their products.” He also touted policies to make housing more affordable and called on Congress to work to lower the price of prescription drugs and lower the cost of child and elderly care.
Biden’s meeting with Powell on Tuesday showed he has turned his attention to high inflation, including the high cost of natural gas and other commodities, which has dogged the president’s approval ratings and is a challenge for Democrats in the upcoming midterm elections . It was the first meeting between Biden and Powell since November.
The third part of the president’s plan involves reducing the federal deficit through “common-sense reforms to the tax code.”
“We should level the international tax playing field so that companies no longer have an incentive to move jobs and profits overseas. We should end the outrageous inequities in the tax code that allow billionaires to pay less than teachers or firefighters tax rate,” he said.
Biden also noted that the Congressional Budget Office expects the deficit to shrink by $1.7 trillion this year, which would be the largest reduction in history.
“With the right policies, the U.S. can transition from a recovery to steady, steady growth and lower inflation without giving up all of these historic gains,” he said.
The president said he welcomes debate on his three-part plan and took a swipe at Sen. Rick Scott’s (R-Fla.) tax plan, and while other lawmakers have either distanced themselves or refused to participate, the White House has moved Congressional Republicans are tied to the plan. accept it.
“The economic policy choices we make today will determine whether a sustained recovery that benefits all Americans is possible. I will have an open and honest discussion with anyone willing to have an open and honest discussion about a real solution for the American people — Democrats, Republicans people or independents – cooperation,” he said.
Biden also said that “growth will look different” during the transition to lower inflation, noting that job creation numbers will be lower. In addition, the president touted elements of the economic recovery since the COVID-19 pandemic, including falling unemployment and increased savings and reduced debt by American households.
“The U.S. economy is in better shape than almost any other country,” he said.