With financial markets down sharply Monday over whether the new delta variant would endanger the recovery, President Joe Biden on Monday pushed back on inflation fears also giving investors jitters, insisting that his policies will create a strong economy and that higher prices are only a short-term growing pain.
While pushing his infrastructure policies to lawmakers, he also made the case that inflation is merely temporary, a result of lingering supply chain challenges and an uneven restart after an unprecedented economic upheaval.
“Reality is you can’t flip the global economic light back on and not expect this to happen,” President Biden said.
President Biden noted that 60 percent of price increases, according to some economists, are due to global supply chain challenges, such as the shortage of semiconductors that has spurred a spike in car prices, and the increase in lumber prices.
Calling price increases temporary, the president worked to assure Americans he won’t let inflation get out of control.
President Biden also noted that he has assured Federal Reserve Chairman Jerome Powell that he is committed to the independence of the Fed, and encourages Powell to take whatever steps necessary to keep the economy strong.
Source-ABC
