![]() The Federal Reserve earlier this month raised its key short-term interest rate by a half percentage point. Will price-weary shoppers get a bit of relief? The average price for gasoline Tuesday hit a record $4.62 per gallon, according to AAA, about $1.50 more than drivers were paying last Memorial Day weekend. ![]() The Consumer Price Index increased 8.3% annually in April, slightly lower than the 8.5% in March, as a drop in gasoline prices offset a continuing run-up in food, rent and other costs. Respect the Fed's independence," Biden said in brief remarks ahead of the Oval Office meeting, which lasted 41 minutes.Ä«iden this month called tackling inflation his "top domestic priority." Biden and Democrats face major headwinds to maintain control of Congress during November's midterm elections as a result of the price rises that have made many consumers increasingly anxious. "My plan to address inflation starts with a simple proposition: Respect the Fed. With inflation at a 40-year high, Biden met Tuesday with Federal Reserve Chairman Jerome Powell and promised to give him the space to tackle surging consumer prices. The administration later predicted the rise in consumer prices would be temporary. The secretary's admission is the most direct concession yet from the White House that officials failed to grasp the scale of inflation that would come as the U.S. ![]() More: Powell says Fed will keep hiking interest rates until it curtails inflation "As I mentioned, there have been unanticipated and large shocks to the economy that boosted energy and food prices, and supply bottlenecks, that have affected our economy badly that I, at the time, didn't fully understand," Yellen told CNN. Yellen in March 2021 said inflation posed only a "small risk." Two months later, she said she didn't anticipate inflation would "be a problem." Earlier that spring, Biden signed his $1.9 trillion COVID-19 rescue plan into a law, providing a boost in spending that his critics blame for accelerating inflation. "I think I was wrong then about the path that inflation would take," Treasury Secretary Janet Yellen said in an interview on CNN. WASHINGTON - The Biden administration acknowledged Tuesday that it was wrong to downplay the threat of rising inflation last year as the White House works to combat rising consumer prices that have hampered Joe Biden's presidency. Watch Video: Biden meets with Jerome Powell to address inflation across US
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