Inflation looks to be longer lasting than the U.S. Fed thought: Former U.S. Fed vice chairman
President Joe Biden will give a speech on the economy and combating inflation on Tuesday as markets await his decision on the next Federal Reserve chair and possible moves to bring down U.S. energy prices.
For the U.S. central bank, Biden is choosing between Chair Jerome Powell and Fed Governor Lael Brainard, who is viewed as more liberal on climate change and bank regulation. The White House has said Biden will announce his choice before the Thanksgiving holiday on Nov. 25.
The president will “deliver remarks on the economy and lowering prices for the American people” on Tuesday and travel later in the day to Nantucket, Massachusetts, where he and first lady Jill Biden will remain for the Thanksgiving holiday, the White House said in a statement on Sunday. It gave no details on the expected content.
White House economic adviser Brian Deese, interviewed earlier on “Fox News Sunday,” declined to comment on the timing and substance of Biden’s Fed announcement.
White House spokeswoman Jennifer Psaki said Friday that Biden “expects to make a decision” on the Fed chair and, “I expect we’ll have more to share in advance of his departure” for Thanksgiving.
Inflation has emerged as a political burden for Biden as gasoline prices that Americans pay at the pump hit a seven-years high this month. While blaming OPEC countries for the surge, the administration has said it’s evaluating all tools to quell rising energy prices, including tapping U.S. crude reserves.
Biden has sought to build international support for using oil-consumer countries’ crude stockpiles to bring down prices.
On Saturday, Japanese Prime Minister Fumio Kishida said his country is considering releasing oil from its strategic stockpiles, potentially joining China and the U.S. in a coordinated effort to drive down oil prices. That follows a rebuff by the OPEC+ cartel of Biden’s call to increase oil production more quickly.
Japan and the U.S. may make a joint announcement on the release of oil reserves as soon as this week, the Yomiuri newspaper reported.