Biden is working to reduce fears that rising prices will weaken US power

Joe Biden tried to allay fears that rising prices could hurt the US economy and cost him $ 4tn, saying regulators should be vigilant on inflation and expect the Federal Reserve to take action if necessary.

Speaking from the White House on Monday, the US President spoke on job growth and economic growth during the first six months in office when the epidemic ban was lifted and families benefited from the huge amount of money.

But more recently promotion in the coronavirus cases due to the spread of the Delta species and a much higher rise than expected inflation in recent months could exacerbate other economic problems, which could lead to a crisis for the president.

Biden insisted that his officials still believed inflation was declining over time, but did not ignore the potential risks.

“I want to make it clear: my supervisors understand that if we are faced with long-term unrestricted price increases, this could be detrimental to our economy. So we are confident that this is not what we are seeing today, we will be alert to answer whatever it may require. ”

The president also said that he had spoken to them recently Jay Powell, the chair of the Fed, and stressed that it is important for the central bank to manage inflation effectively.

“Money is independent,” Biden said. “It should do whatever it sees fit to contribute to economic growth.”

The president has been pushing for Congress to approve $ 4tn in spending on new jobs and social security, which will be used over the next decade and pay higher corporate taxes.

But Republicans are taking over the economy to build opposition to Congress, says the US can’t afford it to increase government ideas that can use their resources.

Biden has backtracked by saying that the money he wants to raise – and the latest monitoring promoting greater competition in the public sector – it can help reduce prices for the benefit of consumers over time.

“It takes away the pressure,” he said.

In his remarks, Biden contrasted the US economic system that was under his watch with what Donald Trump warned of the economic crisis during the 2020 campaign.

“It turns out that capitalism is alive and well. We are making great strides in seeing how it works, in the best interests of the American people,” Biden said.

He also said that rising prices in recent months have been a natural way to reopen the world’s economy.

“As our economy returns, we see inflation. Some people have raised concerns that could be a sign of rising prices. But that is not our idea, “Biden said.

“[The] the fact is that you can never start a global recession and do not expect this to happen. When mankind returns, there will be global catastrophes. ”