Biden Promotes Supply-Chain Progress in Meeting With Retailers
Freight-flation
In an effort to address rising fuel prices in the short term, Biden last week directed Energy Secretary Jennifer Granholm to tap the Strategic Petroleum Reserve, while calling on OPEC+ countries to increase supply longer term. Biden also asked the Federal Trade Commission to investigate possible illegal conduct in U.S. gasoline markets.
“Gas supply companies are paying less and making a lot more. And they do not seem to be passing that on to the consumers at the pump,” he said during remarks on Nov. 23. “Instead, companies are pocketing the difference as profit.”
The White House applied a similar tone in a blog post Monday.
“And with prices for shipping dropping 20% in November, retailers will hopefully be able to begin passing on those savings to consumers soon,” it said.
Polls indicate a majority of voters believe the country is headed in the wrong direction, despite reduced unemployment and growing economic output under Biden.
Many of the supply-chain issues facing the U.S. are largely out of Biden’s control and the White House has acknowledged there isn’t a quick fix.
That includes a global shortage of semiconductors, which continues to cause supply disruptions for cars and electronics.
The White House supports legislation to encourage domestic research and manufacturing of chips but the measure has been stuck in Congress for months. And even after it passes, the impact would not be felt for years, making it a long-term solution that doesn’t help alleviate the immediate supply crunch.
-With assistance from Augusta Saraiva, Jennifer Epstein, Jennifer Jacobs and Michael Sasso.