Fed chief confronts Biden over the cause of US inflation

Russia’s military operations in Ukraine are not a “major driving force,” Jerome Powell told lawmakers.

The chairman of the Federal Reserve Board rejected the White House’s claim that the surge in inflation in the country was largely caused by the crisis in Ukraine. At a Senate hearing on Wednesday, Jerome Powell noted that inflation was high even before Russia attacked neighboring states.

He was answering a question from Tennessee Senator Bill Hagerty. He said there are many driving factors in the US price situation, including: “Supply chain disruptions, supply-restricting regulations … rising inflation expectations, excessive fiscal spending.”

He then asked if Powell agreed with the Biden administration that the situation in Ukraine was the most influential factor given the dynamics of inflation over the last 18 months.

“No, inflation was high … before the war in Ukraine broke out.” The Federal Reserve Board said.

Since Russia’s attack on Ukraine in late February, the White House has repeatedly accused Russian President Vladimir Putin of causing inflation in the United States.He coined that term too “Putin’s price increase.”

“We have 61% [recent inflation] It is driven by prices, energy costs and Putin’s invasion of Ukraine. “ Jen Psaki, then a White House spokesman, told reporters in late April.

Last Sunday, the White House was in Ukraine “The biggest single factor of inflation” domestic.Senator Hagerty explained this as follows: “Misinformation” And in his exchange with Powell, he said it was an attempt to distract the blame.

Later that day, Energy Secretary Jennifer Granholm was asked at a press conference about Powell’s reaction. “Most people will say that fuel prices have exacerbated inflation,” he said. She claimed that the war in Ukraine raised prices by reducing supply.

Russia attacked neighboring countries in late February after Ukraine failed to meet the terms of the Minsk Agreement, which was first signed in 2014, and Moscow finally approved the Donetsk and Lugansk Republics of Donbas. .. The German-French intermediary protocol was designed to give special status to secession areas within Ukraine.

The Kremlin has since officially demanded that Ukraine be a neutral country that never participates in the US-led NATO military block. Kieu argued that the Russian attack was not completely provoked and denied his claim that he had planned to forcibly recapture the two republics.

Fed chief confronts Biden over the cause of US inflation

Source link Fed chief confronts Biden over the cause of US inflation

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