Biden says inflation temporary; Fed should do what it deems necessary for recovery

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FILE PHOTO: Customers visit Macy's flagship store in New York City, New York
FILE PHOTO: Customers visit Macy’s flagship store in New York City, New York, U.S., May 20, 2021. REUTERS/Eduardo Munoz

July 19, 2021

WASHINGTON (Reuters) – U.S. President Joe Biden on Monday said an increase in prices was expected to be temporary, but his administration understood that unchecked inflation over the longer term would pose a ‘real challenge’ to the economy and would remain vigilant.

Biden said he told Federal Reserve Board Chair Jerome Powell recently that the Fed was independent and should take whatever steps it deems necessary to support a strong, durable recovery.

(Reporting by Steve Holland and Andrea Shalal; Editing by Andrea Ricci)