It is possible that inflation could ease up so much on its own this year that the Fed will be able to gently slow the economy toward a sustainable path. Higher rates are meant to slow hiring, wage growth and demand enough to tamp down price increases. The central bank is prepared to move swiftly in the coming months to raise interest rates, making money more expensive to borrow and spend. The challenge is that White House policies have historically served as a backup line of defense when it comes to containing inflation, which is primarily the Federal Reserve’s job. “I think I have a better plan to fight inflation.” Biden said, describing the way central bank policies work. “One way to fight inflation is to drive down wages and make Americans poorer,” Mr. Biden struck a defiant tone in the face of that glum outlook, insisting that his administration can take steps - including encouraging corporate competition and strengthening a supply chain that has struggled to keep up with consumer demand - to slow price increases without dragging down employment and pay.

But he also highlighted his plans to help slow rapid price gains, underscoring the challenge Democrats face ahead of the midterm elections: Inflation is painfully high, voters are unhappy about it, and the most tried and true way to cool price increases involves hurting growth and the labor market. President Biden used his State of the Union address to refocus the nation on how far the economy has come since the pandemic recession.

Raises pricing personal backup