According to the White House, the Oval Office meeting between the two will feature a discussion about the current state of the U.S. and global economy.
Biden launched an effort this week to convince the public that he is addressing inflation, which has badly hurt his approval ratings and undercut support for his agenda.
The meeting comes as inflation cooled on an annual basis for the first time since 2020 in the gauge favored by the Fed. The monthly decline, which will almost certainly be discussed, might be an early sign that inflation has started to peak.
Inflation, as measured by the personal consumption expenditures price index, decreased to 6.3% in the 12 months ending in April, according to data released by the Bureau of Economic Analysis on Friday morning. The Fed’s target for inflation is 2%.
The Fed is at a precarious time as it continues to raise interest rates in response to the too-high inflation. It must toe the line between reining in inflation and preventing the economy from cratering into a recession.
The central bank increased its interest rate target by a quarter of a percentage point in March and subsequently hiked rates by half a percentage point earlier this month. The half-point hike is akin to two simultaneous rate increases and shows that the Fed is growing increasingly more worried about the higher prices.
Inflation tracked by the Consumer Price Index, which is better known by the general public, increased 8.3% for the 12 months ending in April. Although that number is exceedingly high, it was a slight decline from the month before, which experienced 8.5% annual inflation.
Powell, a Republican, was renominated to helm the central bank by Biden and enjoyed bipartisan support during his confirmation. Some Republicans hoped he would have moved faster to raise interest rates and tighten monetary policy.
Political | Process 
Leave a comment