US President Joe Biden sees rising inflation in the US as a temporary phenomenon. At the same time, he made clear that it was not up to the White House to decide on a currency devaluation, but for the Federal Reserve. Biden said he reiterated the independence of the US central bank’s umbrella when he recently spoke to Federal Reserve Chairman Jerome Powell.
Inflation is currently rising rapidly in the United States. Fed policy makers see this as a transitional phenomenon, in which the economy picks up sporadically and starts after being physically stagnant at times. Biden agrees. “Uncontrolled inflation is going to be a huge challenge in the long run, but I’m sure it isn’t right now,” the president said.
Through the comments, Biden is facing criticism from Republicans who believe that the president’s economic support and infrastructure plans will increase economic activity. These plans will also lead to rampant inflation. However, Biden believes that the additional spending will create new business and therefore more competition, which will lead to lower prices.
Biden also criticized the so-called “downstream economy”. This economic theory, which has been particularly popular with Republicans for decades, is based on the tax benefits of the wealthy who will then spend more, so that this benefit eventually ends up also with lower-income Americans. It was time, he said, “for the government to start working for all Americans again.”
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