WASHINGTON, Jan. 19 (Xinhua) -- U.S. President Joe Biden said on Wednesday that he supports the Federal Reserve's plan to scale back monetary stimulus and fight inflation, which surged to an almost 40-year high last month.
"COVID-19 has created a lot of economic complications, including rapid price increases across the world economy," Biden said at a press conference in the White House to mark his first year in office.
"A critical job in making sure that the elevated prices don't become entrenched rests with the Federal Reserve, which has a dual mandate, full employment and stable prices," Biden said, adding the Fed provided extraordinary monetary support during the crisis for the previous year and a half.
"Given the strength of our economy and the pace of recent price increases, it's appropriate as ... Fed Chairman (Jerome) Powell has indicated to recalibrate the support that is now necessary," he said, noting he respects the independence of the central bank.
Biden also said the best thing the White House and Congress can do to tackle high prices is "a more productive economy with greater capacity to deliver goods and services to the American people."
The Fed is on track to conclude its asset purchase program in mid-March as it exits from the ultra-loose monetary policy enacted at the start of the pandemic.
Fed officials' median interest rate projections released in mid-December showed that the central bank could raise interest rates three times this year, up from just one rate hike projected in September.
Powell said last week that the central bank would have to raise rates more if inflation remains elevated.
"If we see inflation persisting at high levels longer than expected ... if we have to raise interest rates more over time, we will," Powell told lawmakers.
The consumer price index rose 7 percent in December from a year earlier, the largest 12-month increase since June 1982, according to the U.S. Labor Department. ■