Biden to Economic Team: "Monitor Ally Markets, Maintain Close Communication"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden has instructed his economic team to closely communicate with allied countries and major market players and to monitor the market conditions of each country. This is interpreted as a response to the increased uncertainty in the global financial market due to recent simultaneous interest rate hikes by major countries and the UK's tax cut policies.

According to the White House, on the 28th (local time), President Biden received a briefing on the global financial and energy market situation from his economic team, which consists of the Treasury, Commerce, and Energy Secretaries, as well as the Council of Economic Advisers. The economic team assessed that while the U.S. economy is facing global challenges, it remains resilient. In response, President Biden instructed to maintain close communication with allied countries and major market players and to provide regular briefings on changes in market conditions.

This is interpreted as a response to the recent spread of market anxiety, such as a strong dollar and a sharp rise in government bond yields, caused by interest rate hikes in major countries including the U.S. and financial market instability originating from the UK. Concerns about the energy market also persist, including the leak in the Russian gas pipeline to Europe.

White House Press Secretary Karine Jean-Pierre, during a briefing that day, was asked about the extent to which economic responses are coordinated with allies and partners regarding the strong dollar and the slowdown in economic recession. She replied, "We are communicating with allies and partners, including the UK, about the global economy," and added, "We are closely monitoring the global economy."

She emphasized, "The United States is in a stronger position than any other country to overcome these economic challenges," explaining, "Because jobs have increased, incomes have risen, and people are returning to work."