Politics at play behind Biden’s Fed blessing

Kyle Campbell

In their first policy meeting in nearly a year, Joe Biden gave Jerome Powell something no other president has given to a Federal Reserve chairman: his blessing to raise interest rates. Biden, in brief remarks given Tuesday afternoon in the Oval Office, said he would respect the Fed’s independence as it took steps to cool down inflation, which has been running at a four-decade high...Karen Petrou, managing partner at Federal Financial Analytics, said the high-profile meeting was a way to “separate the administration from the Fed when it comes to fighting inflation.” It could also be a way for the president to hedge his bets, she added. “If inflation meaningfully abates, then the White House can take credit and politely recognize the Fed,” Petrou said. “If inflation stays about the same or worsens, then the emphatic emphasis  on independence sets up the Fed as the inflation fall guy.”