Biden addresses inflation in US, asks Fed to take steps for recovery

US President Joe Biden said on Monday inflation was expected to be temporary but his administration realized that unchecked inflation for a long time would be a “real challenge” to the economy.

Biden also said that he told Federal Reserve Board Chair Jerome Powell that Fed was independent and should take measures necessary for a strong, durable recovery.

Biden said, "I want to be clear: my administration understands that were we ever to experience unchecked inflation in the long term, that would pose a real challenge for our economy.”

"While we're confident that isn't what we're seeing today, we're going to remain vigilant about any response that is needed."

Biden said that his administration was working on supply chain shortages due to car prices have inflated and also mention the downfall in lumber prices.

He added that his plans to invest more in infrastructure, as well as better care for older people and children, would be beneficial to tackle inflationary pressures in the future by boosting productivity.

Biden said that he had told Powell, "The Fed is independent. It should take whatever steps it deems necessary to support a strong, durable economic recovery."

(With inputs from Reuters)

Picture Credits: CNBC