In an editorial story for Wall Street Journal (WSJ), US President Joe Biden outlined a three-part plan to fight inflation.
Key quotes
“I won’t meddle with the Fed, but I will tackle high prices while guiding the economy’s transition to stable and steady growth.”
“Summary of the three-part plan:
- The Federal Reserve … I agree with their assessment that fighting inflation is our top economic challenge right now.
- I led the largest release from global oil reserves in history … Congress could help right away by passing clean energy tax credits and investments that I have proposed …We can also reduce the cost of everyday goods by fixing broken supply chains, improving infrastructure, and cracking down on the exorbitant fees that foreign ocean freight companies charge to move products.
- We need to keep reducing the federal deficit, which will help ease price pressures.”
Ahead of a meeting with Fed Chief Jerome Powell on Tuesday, President Biden said the US central bank has a primary responsibility to control inflation and vowed not to seek "to influence its decisions inappropriately."
Market reaction
The US dollar index jumps towards 102.00, as risk sentiment deteriorates amid mixed Chinese data. The S&P 500 futures are down 0.42% so far.
