President Joe Biden and Federal Reserve Chairman Jerome Powell met Tuesday at the White House to address inflation concerns.
After getting renominated by Biden, Powell was confirmed to a second term as Fed chair earlier this month. As goods continue to cost more, there continues to be pressure on both Biden and Powell to act to control inflation before the U.S. heads into a recession.
One tool at Powell’s disposal is to raise interest rates, which the Federal Reserve did earlier this month. Reports indicate that the Federal Reserve plans on continuing to raise interest rates.
But one thing Powell has little control over is energy prices, which have skyrocketed globally in recent months. The cost of oil surpassed $120 per barrel on Monday.
While the United States is posting substantial job numbers, salaries have not been able to keep up with inflation, driven by rising energy prices, according to data from the Bureau of Labor Statistics. The Consumer Price Index increased 8.5% in the 12 months ending in March. In the last year, average incomes have gone up 5.5%, partially offsetting the effects of inflation.
Biden has called inflation his top domestic issue but has faced criticism from Republicans for not doing enough.