FX.co ★ Biden declares inflation top US economic challenge

Inflation is the main issue for the US economy and the top priority for the federal government, Joe Biden said.

The US president presented his administration's plan to fight inflation at Tuesday's press conference, as the highest prices in 40 years threaten to weigh down on economic growth.

Biden put the blame for rising consumer prices on continuing supply chains disruptions caused by the COVID-19 pandemic, as well as the conflict in Ukraine. He noted that Ukraine, which has about 20 million tons of wheat stored, cannot access the global market due to the war.

Regarding energy prices, Joe Biden stated that the US government has released 240 million barrels of oil from the Strategic Petroleum Reserve and added that US oil and gas production was approaching record high levels. The US president added that the White House was developing plans to develop renewable energy production that would reduce the dependence of consumers on oil.

As the Federal Reserve began its aggressive tightening cycle to reduce consumer prices, the US government had additional measures in store to help Americans, Biden said. The US government has already taken steps to lower energy prices.

Furthermore, the plan to raise taxes on corporations and billionaires would help reduce inflation. The US government could use the tax money to cover the budget deficit, Biden added.

According to the US president, the US government would maintain Medicaid and Medicate, allowing both programs to negotiate prices of prescription drugs. This would reduce healthcare costs for Americans.

President Biden stated his administration was considering eliminating Trump-era tariffs on China. "No decision has been made on it," he said.