Biden: We are studying an increase in tariffs on Chinese goods to fight inflation

US President Joe Biden stressed on Tuesday that he puts “inflation at the top of his national priorities” and that he feels the suffering of Americans after inflation reaches its highest rate. in four decades.

“The Fed has to do its job and it will do its job,” Biden said in a speech in the White House. “I think inflation is our biggest economic challenge in this moment, and I think they see it too. “

But he said some of the “roots of inflation are beyond his control”, referring to the COVID-19 pandemic and fallout from the Russian war. in Ukraine.

Biden said he was trying to raise tariffs imposed by his predecessor, Donald Trump, on China, but no decision had been made.

Biden is under pressure from some quarters to remove tariffs in an effort to reduce hyperinflation in the US by making imports cheaper.

Trump has imposed tariffs to punish China after accusing it of unfair policy.

CPI rose 8.5% for the year ended March, a rate not seen since December 1981, so the central bank broke with the term “temporary” and turned its attention to a new one. term, consolidation.

The Fed has provided very little guidance in general on how long they expect rate hikes to take to reduce inflation. “It’s a very difficult environment to try and give an advance directive 60 or 90 days in advance,” Powell said. “There are many things that can happen in the economy as well in Worldwide”.

There is nothing investors hate more than uncertainty and, since prices in increase affect US markets, want more guidance.

Americans, hit hard by rising gas and food prices, also want to know when they can finally feel some relief, especially if a Fed interest rate hike threatens to drag the economy down. in recession.

A few days ago, after announcing a half-point rate hike to fight inflation, Federal Reserve Chairman Jerome Powell said, “Our job is to make sure that inflation of this uncomfortably high nature does not take root in. economy”.

It is not clear what exactly persistent inflation looks like or how we will know if we hit it.

Read More About: Business News