Biden’s "laser focus" on inflation rankles progressives inside administration

It’s not that progressives want Biden to put pressure on Powell to curb interest rate hikes as President Donald Trump once did. But Biden’s commitment to letting the Fed do whatever it deems fit instead of emphasizing the need to keep making labor market gains struck a nerve.

While every White House engages in internal policy debates, this one stands out because it reflects broader tensions that are roiling the party: Many progressives believe inflation is likely to ease on its own without severe rate hikes; more moderate voices say the only path to improving Democrats’ political fortunes is to bring prices down swiftly.

It’s an excruciating spot for the White House. Polls show inflation is a top concern to voters, so attacking it head-on seems like the smartest political move. Powell and many economists argue that the economy won’t work for anyone if inflation — now at its highest point since Volcker’s day — isn’t reversed quickly.

But progressives worry that Biden is abandoning the liberal vision of government’s role in countering decades of growing income inequality, further assisting women and people of color in making progress in the labor market, and transforming the nation’s infrastructure into one that relies on clean energy.