Biden and Powell discussed record high inflation on Tuesday. He said it's a government priority and reassured the public the economy is strong.

President Biden and Fed Chair Jerome Powell stressed the need of fighting inflation, which is near 40-year highs and has investors anticipating a recession after this year's market selloff.

Brian Deese, director of the National Economic Council, stated after Biden and Powell's discussion that the President will give the central bank the "freedom it needs to confront inflation."

The Biden Administration remains dedicated to battling inflation, a "global challenge" as indicated by today's poor euro zone inflation report, but "won't interfere" with the Fed's efforts, Deese said.

Prior to his meeting with Fed Chair Powell, Biden called combatting inflation a "top economic priority" for his administration.

Deese said Biden "agrees with the Fed's view" on inflation and "has confidence in the folks he's nominated."

Deese said after Biden and Powell's discussion that the administration is "confident we can handle this challenge and focus on bringing inflation down without sacrificing economic development."

With recently released minutes from the Fed’s latest policy meeting indicating that most officials favor similar 0.50% interest rate hikes at upcoming meetings in June and July, the central bank is on pace for its most aggressive rate-hiking cycle in decades.